Prices are still slowing, says the government

Its latest figures, for August, show the inflation rate slowing from the 4% level recorded in July.

The ODPM said prices in the UK were in effect unchanged between July and August, with the average property now costing �186,208.

The figures are in line with other surveys for August from the Nationwide and Halifax mortgage lenders.

However last week the Halifax's survey for September suggested that house prices had started to move up again.

English housing

The ODPM's survey of English housing, which it also published today, highlights recent trends in the property market.

It appears to confirm that high house prices have been preventing some younger people from buying their own homes.

The proportion of households under 30 who are buying with a mortgage has fallen from 40% in 2001 to 36% in 2005.

Over the same period, the proportion of the under-30s who are renting privately has risen from 33% to 40%.

Endowment policies fade

The ODPM's figures also reveal the decline of endowment mortgages, because of widespread fears that they will fail to cover the outstanding debt.

Many English households are well-established

Currently, only 7% of new mortgages are being taken out with an endowment policy as the preferred method of repayment.

And 71% of new home loans are now straightforward repayment mortgages.

As a result, the proportion of outstanding mortgages with endowment policies attached fell from 67% in 1993/94 to just 27% in 2004/05.