Bad economic news returned the market, reversing yesterday's euphoric tone and bringing back fears of a protracted slump.
The FTSE-100 Index barely moved 2 points to 5,368 at 9:30am after Nationwide Building Society said UK house prices fell the most in six months in August. The average home price fell 0.9% from July to £166,507, the mortgage lender said. The fall has lowered the annual gain from last year to 3.9%, the weakest pace since November.
Richard Hatch, head of residential at property consultancy Carter Jonas said: "Last year, there was a major disconnect between the property market and the economy. House prices rose at a rate that was simply unsustainable and a degree of correction was always on the cards. An increase in the number of properties for sale, specifically at the lower end of the market, is diluting demand and seasonal factors will have added to that downward pressure in recent months."
