House prices rose for the seventh month in a row during November but there are further signs that the pace of the recovery is beginning to ease, figures showed today.

The cost of a home increased by 0.5 per cent during the month, pushing average property prices up to £162,764 – a level last seen in August 2008, according to Nationwide.

Martin Gahbauer, Nationwide’s chief economist, said: “The monthly rate of house price inflation was unchanged in November at a seasonally adjusted 0.5 per cent, leaving the average price of a typical property 2.7 per cent higher than a year earlier.”

But there are signs that the recent pace of the recovery may be moderating, with the 0.5 per cent rise recorded for both October and November, the smallest since prices stopped falling in April.

The three-month on three-month growth rate, which is generally considered to be a smoother indicator of the underlying trend, also moderated during November to 2.8 per cent, down from 3.5 per cent in October and 3.8 per cent in September.

Today’s figures come the day after the Bank of England reported that the number of loans approved for house purchase had increased for the 11th consecutive month in October, rising to 57,345, their highest level since March 2008.

The housing market has recovered more quickly than expected during 2009 as a shortage of properties on the market has pushed up prices. However, many economists are predicting a return to price falls during 2010 as more homes are put up for sale.

Nationwide said the housing market remained “crucially dependent” on labour market conditions.