The Halifax House Price Index registered a small 0.1 per cent fall in August compared with a rise of 0.5 per cent in July.
The Halifax does not believe the fall signals the beginning of a recession in the housing market. But it believes that the market growth will be moderate for the next few months.
On an annual basis, house price inflation is up 5.3 per cent with the average house price standing at £72,568.
The market for first time buyers remains unchanged with prices averaging £52,836. But the annual rate of new house price inflation rose sharply in August to 6.7 per cent compared to 3.6 per cent in the same month last year.
The is due to the sharp monthly fall that occurred between July and August last year.