The building society's house price analyst Robert Gardner warned the outlook was "highly uncertain", citing a fall in the number of agreed mortgages and fewer sales enquiries reported by surveyors and agents. "The number of mortgage approvals fell by almost 20pc between January and May," he said, indicating activity was "cooling".
The downbeat message came, however, as the mutual's index showed a further monthly increase in average national prices, of 0.8pc, pushing annual price rises up from 10.6pc in July to 11pc in August.
He questioned how much of the slowdown was due to the introduction of tougher new lending rules in April, known as the Mortgage Market Review, which forced lenders to undertake stringent new checks on applicants' income - and how much was due to "an underlying loss of momentum".
But Mr Gardner said prices would continue to be supported by a general shortage of housing and low mortgage rates. "Guidance from the Bank of England suggests that the increase in interest rates is likely to be gradual, and they are expected to settle at a level below the average prevailing before the financial crisis."
Other commentators say the slowdown in lending has yet to filter through to prices .
Alex Gosling of online estate agents Housesimple.co.uk said: "It's surprising that a drop off in mortgage approvals hasn't had a greater impact on prices but this has been countered by a strengthening labour market and consumer confidence. All eyes will still be on the London property market and where it goes next. There are definitely signs that the capital's market is cooling. The concern will be how far do prices have to drop before panic starts to set in."
In separate research Nationwide analysed the relationship between house prices and a property's proximity to public transport. It found that in London being within 500m of a station added £42,000 to the average property value. In Manchester the figure was £12,000 and in Glasgow £9,400.
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