Annual house price inflation in Britain fell for the eighth consecutive month to 12.4 per cent in August from 13.2 per cent in the previous month, property website Rightmove.co.uk said.
But house prices were flat on the month on a non-seasonally adjusted basis, compared with a marginal rise of 0.4 percent in July. The average property asking price was £166,244 sgterling.
House prices are a key determinant of consumer spending in Britain where two-thirds of families own their homes.
Rightmove said the housing market continued to be underpinned by cheap mortgage deals and improved price stability which encouraged buyers back into the market.
"It's helped by sellers being more realistic about price," said Mr Miles Shipside, commercial director of Rightmove.
"With low interest rates and such generous mortgage deals on offer from lenders, as well as stable house prices, buyers realise that it's cheaper to buy than to rent," he said.