The Nationwide Building Society has reported that the seasonally adjusted price index for a typical UK property was essentially unchanged in September, edging up by 0.1% on its August level.

The annual rate of house price inflation was 3.1%, down from 3.9% in August and 6.6% in July.

Martin Gahbauer, Nationwide’s chief economist, said: “The three month on three month rate of change – a good indicator of the near term price trend – fell from 0.0% in August to -0.9% in September. This represents the first negative reading for the three month rate of change since May 2009 and is consistent with the clear loosening of housing market conditions observed over the summer months.