House prices fell 2.6 per cent year-on-year in August, according to the latest house price data from the Land Registry.
Prices fell 0.3 per cent on average between July and August, taking the average house price in England and Wales to £162,347.
London was the only region to experience an increase in property values over the past 12 months, with prices increasing by 2.1 per cent. The East experienced the biggest monthly rise, with prices increasing by 0.8 per cent.
The North East experienced the greatest annual fall, with a decrease of 7.8 per cent, while Wales experienced the biggest monthly fall, with prices decreasing 1.7 per cent.
The most up-to-date figures show that the number of completed house transactions fell 13 per cent, from 62,714 to 54,776, between June 2010 and June 2011.
The number of £1m plus properties sold during that time fell 28 per cent, from 644 to 465.