House prices fell by 2.2 per cent in the year to May, according to the latest data from the Land Registry.
The average price fell 0.4 per cent between April and May, meaning the average price is now £161,823.
London was the only region in England and Wales to experience an increase in property prices in the past year, rising by 2.9 per cent.
The most up-to-date data shows the number of completed house sales in March decreased by 13 per cent to 44,803 from 51,399. The number of properties sold in England and Wales for over £1m increased by 58 per cent between March 2010 and March 2011, from 511 to 805.