Nationwide's housing figures index revealed that house prices had risen by 2.1% during July.
This takes their overall growth figures for 2004 to 20.3% Despite this, estate agents Haart and Hometrack said that they believed prices had fallen by upto 5% during July.
Our view
The results from Nationwide could have something to do with the quarter percent rise in interest rates yesterday.
Last month, many industry commentators were claiming an overall UK fall in house prices but this appears not to be the case. With prices increasing, albeit at a slower rate, spare a thought for first time buyers who are now having to pay an average of £165,000 for their first home.
The problem is that many just do not have the income to support this size mortgage.