Annual house price growth slowed to 0.3% in November from 1.5% in October, Halifax’s house price index found.
On a monthly and quarterly basis prices slowed by 1.4% and 1.1%.
Russell Galley, managing director, Halifax, said: “High employment, wage growth and historically low mortgage rates continue to make home ownership more affordable for many, though the need to raise a significant deposit still acts as something of a restraint on the market.
“This is largely offset by relatively limited supply of new and existing properties for sale, which continues to sustain house prices nationally.”
The average house price is now £224,578.
Dilpreet Bhagrath, mortgage expert at online mortgage broker, Trussle, said: “House price growth is still slow due to a lack of activity in the market and we expect this to continue throughout the winter, until there’s more clarity around Brexit and we’re all on firmer footing.
“There’s also a huge amount of discussion about a looming interest rate rise, which will be putting upsizers off moving as they’ll be more wary of taking on more debt.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “These figures come on the back of recent encouraging housing transaction and mortgage approvals. However, they do continue the trend from last month of a softening, not correcting, market.
“Looking forward, we don’t expect activity to change much bearing in mind seasonal and political distractions. On the ground, lethargy is replacing energy as the market seeks direction in the early new year.”