By Marcus Leach

The latest monthly survey by Nationwide building society show that the UK housing market is still subdued.

Nationwide says prices rose by just 0.3% in May, which still left them 1.2% lower than a year ago at an average of £167,208.

"House prices increased by 0.3% in May, only just offsetting the 0.2% fall recorded the previous month, and leaving prices 1.2% below the level prevailing in May 2010," Robert Gardner, Nationwide's Chief Economist, said.

"At 0.6%, the three month on three month measure of house prices was little changed from the 0.7% pace of increase recorded in April.

"Overall, the modest pace of house price growth in May suggests that the property market is continuing to mirror the lacklustre trends evident in the wider economy."