Analysts had forecast a decline of 0.5 percent on the month, for a three-month annual rate of 4.4 percent. Halifax economist Martin Ellis said gains in the last two months had reversed the price falls reported between April and June, leaving prices at a similar level to where they were at the end of 2009 and that activity has also been static so far this year.
"These developments suggest that the market is broadly stable with house price inflation having cooled since last year when supply shortages helped to push up prices," Ellis said.
"We expect that UK house prices will remain static overall in 2010." Rival mortgage lender Nationwide reported last week that house prices fell 0.9 percent last month -- the sharpest fall since February due to a rise in the number of properties available.
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