House prices increased by 0.1 per cent in September, according to the latest house price index from Nationwide.
The price of a typical home in September is now 0.3 per cent lower than a year go at £166,256.
Nationwide says weak demand and labour conditions ensured house prices continued to “tread water” in September.
Nationwide chief economist Robert Gardner says: “Sluggish demand for homes on the back of weak labour market conditions, combined with only a gradual rise in the supply of available properties, has helped to keep property prices fairly stable since the summer of 2010.
“We expect this trend to be maintained over the remainder of 2011, although downside risks have increased as UK and global growth prospects have weakened.”