Year-on-year house price growth remained "little changed" in August, Nationwide has stated, as the average UK house price increased by 1.6% to £275,465.

The data from the building society's latest house price index follows growth of 1.4% in July, when the average house price stood at £276,581.

Month-on-month, house prices increased by 0.2%, following a 0.1% decline in July.

The building society said that market activity and house prices have "remained subdued" in recent months, partly reflecting the "uncertain economic backdrop".

It stated that geopolitical tensions have remained high, with the conflict in the Middle East putting pressure on energy prices and market interest rates.

Chief economist at Nationwide, Robert Gardner, said: "Market expectations of the future path of Bank Rate have been volatile. While the latest energy price shock poses inflation risks, there have been encouraging signs that it is not feeding through to underlying price pressures. Indeed, private sector wage growth has eased further in recent months, which should give policymakers breathing space to assess the extent to which tighter policy is necessary to ensure inflation returns sustainably to target.

"Underlying affordability is improving, as house price growth remains well below earnings growth. although some of these gains have been offset by higher mortgage rates. Nevertheless, this suggests that activity should regain momentum in the quarters ahead providing the energy shock wanes and confidence returns, especially if market interest rates fall back towards pre-conflict levels."

Propertymark CEO, Nathan Emerson, concluded: "Considering factors such as ongoing global unrest, it is positive to see the housing market deliver stability and overall consistency.

"The wider economy continues to be finely balanced, with many factors continuing to prove an unwelcome undercurrent for consumer affordability. Across the year to date, there have been many challenges to navigate, with average energy prices climbing, inflation still higher than targeted and the base rate remaining higher than many might prefer.

"A key moment for many households will come with the next base rate decision due mid-month, closely followed by what might be included in the forthcoming Autumn Budget at the end of October."

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