The latest monthly report from the Nationwide building society indicates that house prices are stabilising.
In the UK, house prices rose by 0.2% in July, to an average of £168,731, this is just 0.4% down on a year ago.
The Nationwide chief economist, Robert Gardner, said
"House prices remain relatively high compared to incomes and, together with more demanding deposit requirements,
this is dissuading, or at least delaying, some first-time buyers from entering the market"
The report said that demand for homes is still sluggish, and that a gradual rise in the supply of available houses is keeping prices stable.
In a separate report, figures from the Bank of England showed a slight rise in mortgage activity.
