By Daniel Hunter

The growth of house prices continued to slow down for the third consecutive month in November, according to Nationwide.

The mortgage lender said prices grew by 8.5% compared with November 2013, down from the 9% increase seen in October.

An a monthly basis, prices were up 0.3% in November when they had grown by 0.5% in October.

It means that Nationwide's average house price is now £189,388.

"The annual pace of house price growth continued to soften in November, falling from 9.0% in October to 8.5%, marking the third consecutive month where annual growth has moderated," said Robert Gardner, Nationwide's chief economist.

"Housing market activity levels have remained relatively weak in recent months."


Mr Gardner also suggested that there is a growing disconnect between the housing market and economic indicators.

He said: "In particular, the labour market has continued to improve, with employment rising strongly and the unemployment rate falling sharply in recent months.

"Moreover, indicators of consumer sentiment remain elevated, where healthy rates of retail sales growth and new car registrations also suggest that households are feeling more confident."

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