A survey from research company Hometrack showed house prices in England and Wales continued to fall in October, though at a slower rate than in the previous month.
Hometrack said house prices declined 3.5 percent year-on-year in October, a slight easing from a 3.7 percent drop reported in September.
But analysts said the market was slightly less concerned about another interest rate cut from the Bank of England by the end of this year, following last week's strong retail sales data.
"Euro/sterling has come back up a little bit...but the bigger picture is that market expectations of another interest rate cut by the end of the year in the UK have subsided," said Petya Koeva, associate director at Barclays.
At 1504 GMT sterling traded a quarter percent down on the day at 67.73 pence, after rising as high as 67.49 pence earlier in the session to its highest level in a month.
Against the dollar, sterling traded steady on the day at $1.7696.
The BoE cut rates in August by 25 basis points to 4.5 percent, the first cut in two years.