British housing market weakens

London -- Home prices in Britain are deteriorating and houses are taking longer to sell than than at any time in the last seven years.

Prices fell in 0.8 percent in November and 0.5 percent in December -- the first two consecutive months of price drops since August 2000 -- said Britain's Nationwide Building Society, warning the housing market likely will continue to deteriorate next year, The Telegraph reported Saturday.

Home prices rose 4.8 percent for 2007, the lowest annual price inflation in 19 months.

The Society's report will increase pressure on the Bank of England to cut interest rates in an attempt to stimulate the housing market, the Telegraph reported.

Halifax, Britain's largest mortgage lender, last week reported the number of first-time home buyers in the United Kingdom had fallen to its lowest level since 1980.

Copyright 2007 by United Press International.