The monthly change from February to March is a decrease of 0.6 per cent.
The region in England and Wales which experienced the highest increase in its average property value over the last 12 months is London with a movement of 4.2 per cent. Wales experienced the greatest monthly rise with a movement of 2.0 per cent.
The North West experienced the greatest annual price fall with a decrease of 3.5 per cent. The North East saw the most significant monthly price fall with a decrease of 2.6 per cent.
The most up-to-date figures available show that, during December 2011, the number of completed house sales in England and Wales increased by 8 per cent to 61,470 compared to 56,875 in December 2010. The number of properties sold in England and Wales for over £1 million in December 2011 decreased by 13 per cent to 488 from 559 in December 2010.
Mark Blackwell, managing director of xit2, the property data specialist, said:
“The fillip – in terms of both prices and activity – we saw over the winter has turned out to be something of a false dawn. The situation is only going to get worse; tougher times lie in wait for the housing market over the next few months. Lending to new buyers will drop sharply this quarter as mortgage lenders struggle to cope with their increased funding costs.
"Up until now, the banks have absorbed increasing costs rather than passing them onto the consumer. That policy has veiled serious underlying weaknesses in the mortgage market and the way it’s funded. Now lenders’ balance sheets are stretched to breaking point, those weaknesses are coming to bear.
"Lenders have told the Bank of England they’ll be forced ship extra costs onto customers in the form of higher rates and fewer high LTV loans. This will put the brakes on first time buyer activity, and reverberate through the rest of the market.”
Russell Quirk, founder of eMoov.co.uk comments:
"Topsy turvy is how I would describe this latest house price data from the Land Registry.
"For the North East to show growth of 5.6% and the capital to shed 1.8% is a bolt from the blue.
"This latest data shows that London is human after all.
"Certain areas that have seen sharper price falls are starting to come back a bit while areas that have outperformed are seeing that they cannot escape economic gravity.
"There's neither rhyme nor reason to house prices right now. With transaction levels so low, prices can swing dramatically from one month to the next. And that's what's happening month after month.
"The economic climate will ensure that prices move sideways at best during 2012.
"A property is ultimately worth what someone will pay for it, not what the house price indices say it is worth."
Liya Fateh, director, estate agent review website MeetMyAgent.co.uk commented:
"What can we deduce from this latest set of price data? - not a great deal. Take these figures with a pinch of salt - London prices down, North East prices up - it all seems a bit incongruous.
"It's the same old problem distorting house price indices - transaction numbers are still running at very low levels, and although there have been tentative signs in recent months that buyer confidence is returning, the numbers we are talking about hardly suggest a recovery.
"The housing market remains in a fragile state, and speak to the estate agents on the ground and they will say similar things - yes they are starting to book more viewings but offers are still thin on the ground.
"Prospective buyers are not rushing into purchases, and the recent news that we're now officially in recession again is unlikely see buyers rushing through the estate agents' doors."
Nicholas Leeming, business development director at Zoopla.co.uk, said:
“A number of London’s sellers decided to drop prices in February and March in order to keep buyers interested as the prospect grew of either a mansion tax or a new stamp duty threshold being announced in the Budget.
"As a result, the month-on-month fall in average prices in London is likely to be a temporary blip, however, the fall will put pressure on annual price growth in London over the coming months. The overall trend of average price falls demonstrates there is still some nervousness among buyers and this is putting downward pressure on prices.
"However, we have found that the majority of homeowners are still confident of price rises over the next six months. This confidence will need to be shared among buyers and activity levels will need to rise if we’re to see consistent growth in average prices this year, however, the fact remains that for buyers with healthy deposits and who fit current lending criteria, now is a good time to pick up a bargain.”
