By William L. Watts, MarketWatch LONDON (MarketWatch) -- British house prices continued to slide in November, and there's little hope for a quick turnaround in the market, mortgage lender Nationwide said Thursday. House prices fell 0.4% in November, leaving the average price down 13.9% from the same month last year, Nationwide's monthly housing survey found. House prices tumbled 1.3% in October for a 14.6% annual decline. The decline was less severe than had been expected. Economists had produced a consensus forecast of a 1.6% monthly decline and a 15.4% drop from November 2007. The November fall knocked the average price down to 158,442 pounds ($244,039), from 158,872 pounds in October. "In spite of the moderation in house-price falls recorded in November, with the economy in recession, conditions do not appear very favorable for swift recovery in the housing market," said Fionnuala Early, chief economist at Nationwide. A weakening labor market is certain to undercut demand, particularly in cases where prices remain high relative to earnings, she said. The pace of housing declines also gives borrowers little incentive to hurry into the market, although sharp interest-rate cuts by the Bank of England and other measures should provide some general support to the market, Earley said. The 20 billion pound stimulus package announced by the government earlier this week, including a cut in the value-added tax and additional government spending, may have an "indirect effect" on the housing market, Earley said. It's unlikely to provide much benefit unless it significantly improves consumer expectations, she said, adding that such an impact is unlikely since incomes will continue to be squeezed as the economy shrinks. Earley said the government's decision to raise the threshold on a property-transaction tax known as stamp duty in September appeared to have little impact on overall market sentiment or activity so far.

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