UK house prices fall 0.4 pct mm in April-Nationwide

British house prices resumed their slide in April, data from mortgage lender Nationwide showed on Thursday, suggesting last month's rise was no more than a blip in a downward trend.

Nationwide said the average house price fell 0.4 percent on the month, partly reversing a surprise 0.9 percent rise in March. Prices were 15 percent lower than a year earlier and down a fifth from peaks set in October 2007.

There have been a few tentative signs that housing market activity may be stabilising but little sign yet that prices have found their floor.

The building society said government initiatives to boost lending and help first-time buyers get on the property ladder were welcome but would not turn things around.

"For the most part, buyers will remain cautious as long as they think that prices will continue to fall," said Fionnuala Earley, Nationwide's chief economist.

"Economic fundamentals will continue to dominate housing market prospects," she added.

Britain's economy is expected to shrink by more than 3 percent this year, its sharpest contraction since the Second World War.

While record-low interest rates have fuelled a rise in homebuyer enquiries, mortgage lenders are still reluctant to lend to those without a significant equity cushion.

Job insecurity is also a powerful deterrent. The number of Britons out of work has risen to a decade high above 2 million and is expected to hit 3 million by the end of the year.