house prices
Reuters

UK house price inflation has fallen to its lowest level in 11 months as mortgage lending curbs come into force.

According to Nationwide, UK house price inflation slowed to 8.5% in the year to November.

"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," said Robert Gardner, chief economist at Nationwide.

According to Office for National Statistics data, annual house price inflation was at 12.5% in England, 5.8% in Wales, 7.6% in Scotland and 10.9% in Northern Ireland.

The average UK house price in September 2014 stood at £273,000 (€342,025, $427,614) compared with £274,000 in August.

The regional breakdown showed that the average property price in England stood at £285,000, £172,000 in Wales, £143,000 in Northern Ireland and £197,000 in Scotland.

The Bank of England (BoE) has kept UK interest rates at a record low of 0.5% since 2009.

The BoE capped mortgage lending on 1 October while the Financial Conduct Authority installed new affordability checks for homeowners to stop the soaring UK house prices.

The checks are also designed to make sure that Britons are able to withstand a rise in rates after obtaining a mortgage.

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