LONDON (AP) — Average house prices in Britain are on a downward trend despite a 1.8 percent rise in October, the country's biggest mortgage lender said yesterday.

The monthly rise reported Thursday by Halifax followed a 3.7 percent slump a month earlier and contrasted with the findings by the Nationwide Building Society, the nation's No.3 mortgage lender, which saw a 0.7 percent fall.

Both companies, however, noted that average prices in the August-October period were lower — Halifax recorded a 1.2 percent drop while Nationwide reported a 1.5 percent decline.

Both base their reports on their own lending.

"An increase in the number of properties available for sale in recent months, together with a decline in demand, has put some downward pressure on prices in recent months," said Halifax economist Martin Ellis.

"We do not believe that prices are set to fall sharply over a sustained period," Ellis added, mainly because interest rates are expected to remain low.

The Land Registry, a government agency which surveys all housing transactions in England and Wales, said in its latest report that house prices were up 0.2 percent in September.

Year-on-year, the Land Registry said house prices rose 5.2 percent, while Halifax reported a rise of 1.2 percent and Nationwide put it at 1.4 percent.