The monthly survey has found that the average house price in November dropped 14.9% year-on-year to the same level last seen in July 2005 – £163,445.
But Halifax says that the UK average house price is 124% higher than 10 years ago sitting more than £90,000 higher than in November 1998.
Martin Ellis, chief economist for Halifax, says: “There was a 2.6% decline in average UK house prices in November.
“The combination of high house prices in relation to earnings, constraints on householders’ incomes and spending power and the decline in the availability of mortgage finance since the summer of 2007 has curbed housing demand.
He adds: “These factors are major contributors to lower house prices and activity.
“Lower house prices, however, mean that a key housing affordability measure – the house price to earnings ratio – is at its most favourable for over five years at 4.56.”