House prices continue to flat line in July

House prices rose just 0.2% in July, as the combination of low demand and slowly increasing housing supply continued to kept values flat, according to Nationwide.

Its house price index showed the average property price in July was £168,731, down 0.4% on July 2010.

The three-month on three-month change in house prices also saw little movement in July, up 0.3% compared to 0.4% in June.

Meanwhile, property transaction volumes remain at historically low levels, with 204,000 recorded in Q2 2011 - the lowest level since Q2 2009.

Robert Gardner, chief economist at Nationwide, said: "Stability has been the watchword for the UK housing market over the past 12 months. Sluggish demand for homes, combined with only a gradual rise in the supply of available properties, has helped to keep property prices relatively stable."

In 2011, the most significant monthly house price movement has been a 0.6% rise in February, while the last time house prices grew more than 1% in a month was April 2010.

In the last 12 months, Nationwide's index reveals that modest monthly house prices have been counteracted by four separate monthly falls.