Property prices are still lower than last year but the annual rate of decline in property values has slowed to 2.7%. The average price of a home is now £160,000, up from £158,000 in July.
A key reason why house prices have contiunued to rise is the historically low level of interest rates, with the Bank of England holding rates at 0.5% since March.
"The fall in debt serving costs has meant that fewer homeowners are under immediate financial pressure to sell than might have been expected in a recessionary economic background with rising unemployment," said Martin Gahbauer, Nationwide's chief economist.