The data found that house prices were down 0.1% month-on-month to £271,079 from £272,664 in July.

It also shows that 87% of owner-occupied properties in England have at least one spare bedroom, while 53% are classified as being ‘underoccupied’.

This compares to the private rented sector where only 16% of properties are ‘underoccupied’.”

Nationwide chief economist Robert Gardner says: “The relatively subdued pace of house price growth is perhaps understandable, given that affordability remains stretched relative to long-term norms.”

“House prices are still high compared to household incomes, making raising a deposit challenging for prospective buyers, especially given the intense cost of living pressures in recent years.”

“Combined with the fact that mortgage costs are more than three times the levels prevailing in the wake of the pandemic, this means that the cost of servicing a mortgage is also a barrier for many.”

“Indeed, an average earner buying the typical first-time buyer property with a 20% deposit faces a monthly mortgage payment equivalent to around 35% of their take-home pay, well above the long run average of 30%.”

“However, affordability should continue to improve gradually if income growth continues to outpace house price growth as we expect. Borrowing costs are likely to moderate a little further if Bank Rate is lowered again in the coming quarters. This should support buyer demand, especially since household balance sheets are strong and labour market conditions are expected to remain solid.”

Propertymark chief executive Nathan Emerson states: “It is encouraging to see that house prices remain resilient at a time when the housing market has seen turbulence, very much influenced by the current economic backdrop.”

“There are, however, many positive factors to reflect upon: we have witnessed a drop in the number of fall-throughs, a trend that demonstrates an uplift in the number of property transactions completed, and the number of overall listings reaching an all-time high.”

“There are challenges ahead, however, such as increasing the supply of new sustainable homes, providing assistance to first-time buyers, and for lenders, ensuring that the latest drop in interest rates translates into more affordable mortgage products.”

Quilter mortgage expert Karen Noye adds: “While the housing market has remained fairly resilient during the usual summer lull, affordability pressures are still weighing heavily.”

“Last week’s property transaction figures pointed to relatively steady buyer demand, with July seeing 95,580 residential transactions – a 4% increase compared to the same month last year. However, the most recent inflation print has complicated the outlook for interest rates.”

“Mortgage rates have been easing slightly but typical fixed deals remain around 4%, keeping monthly payments elevated, and higher inflation will make the path to lower interest rates even longer.”

“Speculation around potential reforms in the Chancellor’s upcoming budget, including possible levies on high-value homes or changes to capital gains tax on primary residences, could also cause hesitation among sellers. This would tighten supply further and paradoxically push prices higher, worsening conditions for new entrants to the market.

“While the economic backdrop remains challenging, today’s figures suggest the housing market is still managing to hold reasonably firm for now.”

“Sustained momentum will depend on future interest rate decisions and whether upcoming policy decisions support or hinder market activity. Either way, without a significant increase in available homes and clearer policy direction, the market risks stagnation.”