Nationwide's chief economist Martin Gahbauer said lower interest rates had given existing homeowners with tracker or standard variable mortgages a welcome breathing space.

BBC: House prices 'continue to rise'

"If the recent trend in house prices were to continue through November and December, the annual rate of house price inflation would drop to between 0% and -1% by the end of 2010, " said Nationwide's chief economist Martin Gahbauer.

BBC: House prices fell 0.7% in October, says Nationwide