Average house prices fell by 4.6% year-on-year, according to the latest report from the Land Registry, while the monthly fall for August stands at 1.9%, putting the average house price in England and Wales at £174,493. Both monthly and annual changes are the lowest recorded since the start of their reports, the document confirms.

The report found London’s first negative annual change, was recorded at -3.2%, with a monthly change of -2.4%, and the region showing the most significant falls is the East of England, with an annual figure of -6.7%. The North West recorded the highest monthly rise in property prices with an increase of 1.2% in August.

‘The fall in house prices in August was fairly evenly spread across all regions, with only Wales and the North West bucking the trend and recording house price rises,’ said Seema Shah from Capital Economics.  ‘House price falls of more than 2% were recorded in London, the South East, East and South West. Annual house price growth is negative in all regions, ranging from -2.5% in the North West to -6.7% in the East.

‘We are struggling to see what will bring an end to house price falls. Indeed, with buyer confidence almost certain to be depressed further as the economy slows sharply and unemployment continues to rise, it is hard to be optimistic about the housing market outlook.’