Average house prices in the UK stood at £218,330 in November 2007, according to the latest house price index from Communities and Local Government (CLG).

This represented a fall from the previous month's figure of £220,195.

A drop was also experienced in UK annual house price inflation, dropping to 9.5 per cent from 11.3 per cent in October.

Commenting on the CLG data, Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (Rics), said: "Further weakness in the housing market is likely over the coming months."

However, he added that the resilience of the employment sector continues to provide a "key layer of support" to the market.

The Rics economist concluded by stating that the possibility of further interest rate cuts by the Bank of England's monetary policy committee in the first half of 2008 will also help support house prices as first-time buyers are tempted back to the property market.