The average price of houses in the UK increased moderately by 0.6 per cent during the month of October, 2012 amid continuing indications that volatility still exists in the market and it will take some more time to stabilize.

The average selling price of UK homes rose to £164,153 during the month of October. However, Nationwide said that the sector is yet to see a rise in prices because September had recorded a fall of 0.4 per cent in prices. Robert Gardner, Nationwide's chief economist said that the prices have not stabilized as monthly changes have not been towards either direction. He said that during the previous six months, the prices have risen in three months and fallen in the other three months.

The annual pace of change continues to display a picture of relative stability, with house prices down just 0.9pc compared to October 2011. With households and the public sector focused on repairing their finances rather than spending, the economic recovery is likely to remain fairly sluggish, especially since headwinds look set to intensify in the quarters ahead," he said.

Housing prices in the UK are still much lower than the £186,044 recorded before the global financial crisis in October 2007. However, the prices have recovered significantly from the level of £147,746 recorded in February 2009.