The cost of properties in the UK is a good way of gauging how confident consumers are with the economy.

According to Ben Wilkie, editor for What Mortgage magazine, the current uncertain situation is making the market unstable.

Calling house prices a "barometer" of public confidence, the expert stated that he does not think that current values suggest the market is over-inflated.

"Because we're a bit worried about the position we're in at the moment, house prices are going to be a little bit more unpredictable than they would be otherwise," Mr Wilkie added.

He further explained that he does not feel there will be a rise in the Bank of England base rate before the end of the year.

The comments followed the news by Nationwide that house prices took their second consecutive monthly tumble during August 2010, falling by 0.9 per cent during the month and 0.5 per cent in July.

Written by Fiona Mayers

Looking for storage in Slough? Contact us free on 0800 077 3447 now.