"UK house prices declined by 0.6 percent in August, although this does not change the picture of relative stability that has characterised the market over the past twelve months," said Nationwide chief economist Robert Gardner in a statement.

The average value of a home in Britain stood at £165,914 ($269,388, 188,170 euros) in August, according to Nationwide. That was just 0.4 percent less than the same month last year.

"Sluggish demand for homes, combined with only a gradual rise in the supply of available properties, has helped to keep property prices stable since last summer," added Gardner.

"We expect this trend to be maintained over the remainder of 2011, although downside risks have increased as UK and global growth prospects have weakened."