House prices have remained unchanged for the third consecutive month, according to the latest survey.

However, analysts argue that the market remains strong and played down suggestions of a prolonged slowdown.

The average price of a house in England and Wales was held at £135,200 during August, according to property website Hometrack, although rises were seen in the north and west.

Homeowners in Cumbria, Merseyside and Mid-Wales saw the largest increases.

The survey also highlighted signs of recovery with a 1.5 per cent increase in the number of buyers in July and a five per cent rise in completed transactions.

The number of sellers receiving their original asking price remained stable at 94.5 per cent.

"While house prices remain flat this month as a whole, this hides a turning tide within the regions," said Hometrack housing economist, John Wriglesworth.

"House price falls in the southern counties are diminishing both by number and extent.

"Meanwhile, the northern counties are showing clearer signs of house price revival."

The study follows that by the Royal Institution of Chartered Surveyors, which last week reported house price rises in some regions, with an increase in enquiries from new buyers.

However, both findings contradict those of the Halifax and Nationwide, which reported a fall in first-time buyers and house price inflation.