House prices declined for the second month in succession in August, according to the Nationwide building society.

Prices dropped 0.9% last month following a 0.5% decline in July - the first time that prices had fallen for two consecutive months since February 2009.

The building society estimates that the average price for a house in the UK is now just over £165,000.

As more sellers have returned to the market, buyers have a greater selection of properties to choose from and more bargaining power with which to bid down asking prices," said Martin Gahbauer, Nationwide's chief economist.

"Given that the price increases of the last year had gotten ahead of the recovery in the wider economy, the current correction is not an unhealthy development."