Home prices increase in Britain

LONDON, Dec. 1 (UPI) -- Home prices edged higher in Britain in November, rising 0.5 percent to match the same rate of increase in October, the lender Nationwide said Tuesday.

House prices rose between 2.7 percent from a year ago, a jump over October's annual rate increase of 2 percent, Nationwide said.

The average home price in Britain for November was $270,731.86. The index measuring home prices rose from 322.3 to 324.

Home prices are now "at a similar level to where it was in early 2006," said Nationwide Chief Economist Martin Gahbauer. But the rise in prices that began in the spring has slowed to "a more moderate pace," he said.

Prices, he said, were "crucially dependent" on Britain's employment situation, which looks to decline further, but at a slower pace than in the peak of the recession, he said.

"Based on the latest labor market figures ... it looks unlikely that the jobless total will reach three million before the year is up," he said.