House prices see biggest drop in 12 years

The mortgage lender says the cost of an average home has dropped by 0.8% since last month – the first drop in price since February 2006 and the largest from one month to another since June 1995. The annual rate of house price inflation now stands at 6.9%, down from 9.7% reported in October, and has fallen back in line with Nationwide forecasts. The firm’s chief economist, Fionnuala Earley, says: “November’s data confirms that the housing market is indeed cooling in line with the weakening in housing market drivers. “Poor affordability, weaker house price growth expectations and the effe...