UK house prices fall 0.4 pct m/m in Nov-Nationwide

British house prices fell 0.4 percent this month as the credit crisis continues to hit the housing market, but the annual rate of decline eased slightly following October's record drop, a survey showed on Thursday.

The Nationwide building society said house prices were 13.9 percent lower than a year ago in November at 158,442 pounds ($242,500) — a fall of more than 25,000 pounds. In October, house prices were 14.6 percent down on the year.

Nationwide revised up its October monthly reading slightly to show a 1.3 percent fall over the month, compared with a previously reported 1.4 percent decline.

The figures may be taken as a sign that the housing market could be slowly improving following the government's bank rescue plan, support measures and the Bank of England's 1.5 percentage point rate cut, but analysts at Nationwide were cautious.

Most economists expect the market to remain extremely weak for some time as Britain goes through its first recession since the early 1990s.

"With the economy in recession, conditions do not appear very favourable for a swift recovery in the housing market," said Fionnuala Earley, Nationwide's chief economist.

"The labour market is weakening, which will inevitably hinder market demand, particularly when property remains expensive relative to earnings."