The figures show that the 1.7% drop (-£4,542) means that the average price for a property in the UK is now £267,127, down from £271,699 in October.
That still represents an overall increase of +8.5 % since the beginning of the year following the most active year for transactions since 2007.
Regions in the north of England have experienced the sharpest fall in price throughout England and Wales with a -3.6% decrease. Properties in Greater London fared best with a 0.8% increase.
Stock for sale per estate agency branch has fallen to its lowest ever level recorded at this time of year. The overall volume of property coming onto the market has also been slowing with new listings decreasing 1% on this time last year and 15% on last month.
While prices continue to fall in the run up to Christmas, a lack of available properties coming onto the market could see prices rise again in early 2015.
According to last years data from Rightmove there was a surge in visits to the website starting on Boxing day and continuing throughout the nine day holiday period.
However, Jeremy Duncombe, (pictured) director Legal & General Mortgage Club welcomed today’s figures as “being better in the long term.”
He said: “Following the rapid house price increases we saw at the beginning of the year, we have seen a slowdown in the rate of growth over the autumn.
“Although this may feel like bad news to some homeowners it is important to look at where the market was a year ago. We have seen house prices increase across most parts of the country and it is better in the long term for house prices to rise in line with inflation rather then increasing very rapidly each month.”