High street sales and house prices cooling

House price growth fell in November to its lowest level for two years, Halifax said yesterday. Britain's largest mortgage lender said the cost of the average property rose 1 per cent or £1,355 last month to £139,405.

House price growth fell in November to its lowest level for two years, Halifax said yesterday. Britain's largest mortgage lender said the cost of the average property rose 1 per cent or £1,355 last month to £139,405.

On an annualised basis, prices rose by 14.1 per cent a year, the slowest rate of inflation since December 2001 and a sharp slowdown from October's 16.7 per cent.

Martin Ellis, the Halifax chief economist, said: "The gradual easing in house price growth reflects a market returning to average rises after two years of exceptional increases."

The figures, which coincided with a downbeat survey of high street shops, dampened fears that the Bank of England would raise interest rates today.

The CBI said its survey of retailers showed the high street suffered a disappointing month in November.

The balance of companies reporting rising sales tumbled to 19 per cent from 35 per cent in October. However, retailers were optimistic of a merrier December, with the balance of companies ordering more goods from suppliers at the highest level since May last year.

There was more positive news from the services sector, which makes up two-thirds of the economy, where activity rose at the fastest pace for six years.