The monthly change from July to August is a decrease of -0.3 per cent and signals a return to the negative rates seen in May and June.
The only region in England and Wales to experience an increase in its average property value over the last 12 months is London with a movement of 2.1 per cent.
The East experienced the greatest monthly rise with a movement of 0.8 per cent. The North East experienced the greatest annual price fall with a decrease of -7.8 per cent. Wales experienced the most significant monthly price fall with a movement of
-1.7 per cent.
The most up-to-date figures available show that during June 2011, the number of completed house sales in England and Wales decreased by -13 per cent to 54,776 from 62,714 in June 2010.
The number of properties sold in England and Wales for over £1 million decreased by 28 per cent between June 2010 and June 2011, from 644 to 465.
Lucy Pendleton of estate agents, James Pendleton, comments:
"Reflecting the ongoing volatility in the market, house prices are down again in August after a fairly upbeat July. And so continues the eternal to-ing and fro-ing of property prices. Up one month, down the next.
"London, with its unique climate, once again stands out as the most resilient local market in the UK.
"While London prices float upwards due to a shortage of property and strong demand, not least from wealthy foreign buyers attracted by the cheap Pound, for the rest of the UK it is not quite so positive.
"The gulf between London and the rest of the country is becoming more acute, with the average home in the capital now costing 2.15 times as much as the average in England and Wales.
"In other areas of the UK, most notably the North East, prices remain under real pressure.
"While there are many factors that could cause property prices to fall further, specifically economic and employment uncertainty, other factors are providing a degree of upward pressure, namely low interest rates, improved mortgage availability and renewed demand from buy to let investors.
"The result is that house prices overall, in annual terms, are remaining at, or around, the same level.
"These latest figures are not great news for the property market, but they could be a lot worse given the circumstances we're in."
