The Department for Communities and Local Government (CLG) house price index revealed that the annual average house prices fell in all UK countries, down 0.1% in England, 0.8% in Scotland, 1.6% in Wales and 11.7% in Northern Ireland.
The average value of property in the UK in November was £205,796. However, excluding London and the South East, the UK average dropped to £169,063 – down 1.5% over the year.
Nevertheless, first-time buyers saw prices increase 0.7% in November to £152, 423 compared to the same period of 2010, while former owner-occupiers saw prices fall 0.7% over the year to £238,699.
In addition, values for new properties increased 7.7% on an annual basis to £200,399, but this was down on the annual rise of 12.1% in October. On a monthly basis, prices were down 0.3% in November compared to a 3.8% rise in November 2010.
Meanwhile, pre-owned homes dropped 0.9% in value year-on-year in November to £206,222, compared to a 1.2% annual rise in October. Values showed minimal movement over the month, increasing just 0.1% compared to a 0.2% reduction in November 2010.
Average UK house prices were 5.5% below the peak of April 2008, but 9.8% above the recent low recorded in April 2009.
Michael Brown, director of London-based estate agents The Property Lounge, said: “These figures from the tail end of 2011 paint a decidedly sorry picture of the housing market.
“Sadly, many first-time buyers are being squeezed out. While mortgages are cheap, lenders are still asking for big deposits – too big for many people who aren’t already on the ladder.
“Not for nothing are first-time buyers considered the key to the housing market. With so many of them being left on the sidelines, things do not bode well for the future health of the market.”
