The May data from Land Registry's flagship House Price Index shows an annual price decrease of -2.2 per cent which takes the average property value in England and Wales to £161,823. The monthly change from April to May is a decrease of -0.4 per cent.
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 2.9 per cent. The East Midlands experienced the greatest monthly rise with a movement of 0.4 per cent.
The North East again experienced the greatest annual price fall with a decrease of -6.9 per cent. Wales is the region which experienced the most significant monthly price fall with a movement of -3.5 per cent.
The most up-to-date figures available show that during March 2011, the number of completed house sales in England and Wales decreased by -13 per cent to 44,803 from 51,399 in March 2010.
The number of properties sold in England and Wales for over £1 million increased by 58 per cent between March 2010 and March 2011, from 511 to 805.
Nicholas Ayre, a director of UK buying agents, Home Fusion, comments:
"The latest Land Registry figures once again drive home the divergence in prices between London and the rest of the UK. While properties in the rest of the country languish or lose value, those in the capital are seeing price rises.
"London is benefiting from its safe haven status, especially given the uncertainty in the eurozone at present. The ongoing weakness of Sterling is only serving to accentuate the demand from overseas.
"And relative to the UK economy as a whole, the London economy is proving far more resilient. London aside, the rest of the UK is increasingly falling into the red. With the odd exception, prices are under real pressure and continuing to decline.
"And why wouldn't they? The economic recovery is still tenuous at best while consumer confidence is hardly robust. The recent spate of high profile insolvencies on the high street confirms just how delicate the economy is and will add to consumer caution and nerves.
"Given the overall state of the economy, it could be some time yet before demand returns. And even when it does, will the supply of mortgages be there to accommodate it?
"On a positive note, the underlying weakness in the property market right now is at least turning up some great buying opportunities."
