UK property prices saw the biggest fall in 12 years during November, according to data released by Nationwide.

The building society's figures suggest the average cost of a home fell by 0.8% from a month earlier, the first decrease since February 2006, while the Bank of England also said the number of mortgage approvals had slipped to a near three-year low.

"Poor affordability, weaker house price growth expectations and the effect of earlier increases in interest rates have all affected demand in the market," said Fionnuala Earley, chief economist at Nationwide.

The annual rate of house price inflation is now 6.9% compared to a figure of 9.7% that was seen as recently as October.