The housing market is continuing to slow with annual house price growth falling over the last month from 9 per cent to 8.5 per cent.
Data from Nationwide Building Society shows November was the third month in a row where house price has slowed, despite a 0.3 per cent month-on-month rise in house prices.
The average price of property has remained relatively flat at £189,388.
Nationwide chief economist Robert Gardner notes the number of mortgage transactions now stands at around 4 per cent of housing stock, compared to the long-run average of 6 per cent.
He says: “There is something of a disconnect between the slowdown in the housing market in recent months and broader economic indicators, which have remained relatively upbeat.
“While cooling in the London market is a part of the story, this is unlikely to be the main explanation for the slowdown.”
Gardner says affordability does not appear to be overstretched, with first-time buyers still accounting for an “unusually high” proportion of mortgages.
He adds: “Forward looking indicators, such as new buyer enquiries point to further softness in the near-term. However, if the economy and labour market remain in good shape and mortgage rates do not rise sharply, activity is likely to pick up in the quarters ahead.”