The Nationwide Building Society’s house price index for February reported that there was a further softening last month in annual house price growth to 5.7%, from 6.8% in January 2014.

This is the sixth month in a row in which annual growth has moderated, with house prices declining by 0.1% month on month.

The average house price in February was £187,964, down from £188,446 in January.

Robert Gardner, the Nationwide’s chief economist, said: “The broader economic backdrop has remained supportive of housing market activity. Mortgage rates remain close to all-time lows and consumer confidence remains buoyant thanks to a further steady improvement in labour market conditions. Indeed, the unemployment rate has continued to decline and earnings growth has picked up, particularly in inflation-adjusted terms, thanks in part to the sharp decline in energy prices.

“Nevertheless, the pace of housing market activity remains fairly subdued. There was a small increase in the number of mortgages approved for house purchase in December, up 2% from 59,000 in November to 60,300 in December, though it remains too early to determine whether this marks a turning point in activity.

“After rising almost continuously over the course of the 20th century, the rate of home ownership in England has been declining steadily since 2003.

“The downward trend was maintained in 2013/14, with a further drop in the home ownership rate to 63.3% down from 65.2% the previous year. Home ownership is now at its lowest rate for almost thirty years and is eight percentage points below the all-time high of 70.9% in 2003. Moreover, among owner occupiers, the proportion of people owning their home outright also overtook the proportion owning with a mortgage in 2013/14.”