Average UK house prices fell by 0.5% in the third quarter, after allowing for seasonal effects, according to the latest Nationwide House Price Index.

Prices were down 1.6% compared with the same quarter in 2011.

The average UK house price is now £163,910.

10 out of 13 UK regions saw annual price falls in the third quarter.

“There was a significant divergence in performance between the home nations in Q3,” said Robert Gardner, Nationwide’s chief economist. “England outperformed by a significant margin, with prices down just 0.3% in annual terms.

“Scotland was a distant second, with prices down 4% over the year, while Wales saw prices fall by 4.7% compared to Q3 2011. Northern Ireland remained at the bottom of the table, with prices down 9.3% on an annual basis.

“Amongst the English regions, London was the best performing area, with prices up 2.1% compared to Q3 2011. The Outer South East and the North were the only other regions not to see annual house price declines in Q3.

“Yorkshire & Humberside and the North East were the weakest performing English regions, with prices down 2% over the year.”