Rightmove expects three consecutive months of price falls

Asking prices fell to an average of £226,440 in November, which Rightmove attributed to the tail off of the traditional autumn buoyancy.

Miles Shipside, commercial director of Rightmove, said it expected three months of asking price falls before a tentative recovery in early spring because the November price fall proved the market did not have the strength to buck seasonal trends.

He added: "Available property remained thin, with 89,140 new homes coming on to the market this month, 30% below 2007 levels. The market is still suffering from poor liquidity as mortgage availability had progressed at snail's pace over the year."

However, prices across the majority of the country are now higher than they were this time last year. The exceptions are the East Midlands, where asking prices are 1.6% below November 2008 levels, and the North, where they were 0.6% below.

Southern regions showed the largest increases, with asking prices in the South East rising by 3.8 % over the year, driven by the lowest average stock levels per estate agency branch. Shipside explained that the shortage of stock is worse in the South than it is in the North, leading to greater upward pressure on prices due to higher numbers of willing and able buyers who have fewer properties to choose from.

He commented: "Recoveries tend to start in the South, and with lenders favouring buyers with larger deposits and greater job security, it is no surprise that the trend has been repeated this time round."

In terms of London, the south-eastern part of inner London out-performed this year, with Southwark, Greenwich and Lewisham all being in the top five annual increases, with their average rises in the 8%-10% range.

Shipside explained: "Impending upgrades to their rail links are likely a big factor, as canny buyers in the capital are well aware of the added value it brings to ease of commuting and property prices."