The monthly change from August to September is a decrease of 0.3 per cent and continues the negative monthly price change seen in August of -0.1 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 2.7 per cent.
The North West experienced the greatest monthly rise with a movement of 1.0 per cent. The North East experienced the greatest annual price fall with a decrease of 8.2 per cent and the most significant monthly price fall with a movement of
-3.9 per cent.
The most up-to-date figures available show that during July 2011, the number of completed house sales in England and Wales decreased by 11 per cent to 59,919 from 67,475 in July 2010. The number of properties sold in England and Wales for over £1 million in July 2011 decreased by 24 per cent to 707 from 932 in July 2010.
Derek Richardson, managing director of Squarefoot Estate Agents, said:
"House prices continue to trend down but then a degree of downward pressure is inevitable in the current economic climate.
"Although prices dipped slightly in September, the reason they are not dipping further is twofold: low supply and the seemingly unending low interest rate environment.
"Transactions levels are understandably down because confidence is understandably low. Surprisingly, August and September were very busy but now enquiries have fallen off a cliff.
"Nearly a third of sales agreed are falling through due to problems securing mortgage finance at the business end of the transaction. While the overall market remains on the back foot, certain properties and certain areas are bucking the trend and are proving far more robust price-wise.
"Looking forward, we do not expect any significant uptick in the property market until at least February."
Peter Maskell, director of the Sussex-based estate agents Brock Taylor, commented:
"As yet another month of house price stagnation is confirmed, about the best we can say is that it could be worse.
"With the notable exception of the North West, which posted a respectable increase in September, prices in England and Wales are stable at best and dropping off at worst. The key reason for the steady drift in prices is a market which is becoming increasingly polarised between motivated, must-sell vendors - and the rest.
"While the number of new instructions is tailing off, many of those putting their houses on the market now are pricing aggressively. Many will be motivated by the "three d's" - death, divorce or debt in the family. Their desire for a quick sale will often force them to set prices low.
"Sellers who put a property on the market a while ago and who still hope for a better price are seeing them stay on the shelf much longer - sometimes for many months.
"So many estate agents are finding that they have stock hanging around their books for long periods. And without an impetus from the market, many will be stuck with these unsold homes for a while yet."
Nicholas Leeming, business development director at Zoopla.co.uk, said:
“The annual fall in the number of house sales is proof that the dark cloud of economic uncertainty is still causing people to stay out of the property market.
"And the continued fall in average prices provides further evidence of sellers having to reduce prices in order to tempt buyers into transacting.
"Even those at the top end of the market are feeling the pinch with the introduction of the £1m stamp duty threshold contributing to the annual fall in property transactions at this level.
"Only a combination of revitalised confidence in the UK’s economic prospects and further efforts from lenders to assist first-time buyers will help reignite the market. Unfortunately, this is unlikely to happen until well into next year.”
