House prices fall just 0.4% but markets still vulnerable

House prices fell by just 0.4% in November but the housing market is still in a perilous state, according to Nationwide.

The fall contrasts favourably to a 1.3% fall in October and took the annual fall from 14.6% to 13.9%.

But the UK's largest building society warned that the poor economic situation would result in a weak housing market for some time.

"In spite of the moderation in house price falls recorded in November, with the economy in recession, conditions do not appear very favourable for a swift recovery in the housing market," Nationwide's chief economist Fionnuala Earley said.

"With prices falling at their current rate, there is also less incentive for new borrowers to hurry into the market."

The average price of a house is now £158,442, Nationwide said.