By Daniel Hunter

The latest Nationwide housing survey has found that UK house prices fell by 0.1% in April compared with the previous month.

However, with an annual increase in property values of 0.9%, the building society said that there was "momentum" in the market, as the average UK home cost reached £165,586.

Various surveys have suggested that price rises have been driven by increases in London.

"There are reasons for optimism that activity levels will continue to strengthen in the months ahead," Nationwide's chief economist Robert Gardner said.

"There are tentative signs that wider economic conditions are starting to improve, with the economy returning to growth in the first three months of 2013.

"Nevertheless, progress is likely to be gradual. Labour market conditions remain challenging, with the unemployment rate still elevated and wage growth failing to keep up with the rising cost of living."

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