The monthly change from August to September is a decrease of 0.3% and continues the negative monthly price change seen in August of a drop of 0.1%.
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%, the data also shows.
The North West experienced the greatest monthly rise with a movement of 1% and the North East experienced the greatest annual price fall with a decrease of 8.2% and the most significant monthly price fall with a movement of 3.9%.
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% 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% to 707 from 932 in July 2010.
These figures are proof that economic uncertainty is still weighing on the property market, according to Nicholas Leeming, business development director at Zoopla.co.uk.
‘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 £1 million stamp duty threshold contributing to the annual fall in property transactions at this level,’ he explained.
‘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,’ he added.
Meanwhile, the latest report from the National Association of Estate Agents (NAEA) shows that demand for UK property increased for a second consecutive month in September, reaching levels not seen in over four years.
Its September report showed an increase in the number of people registering to look for homes, up from 304 in August to 308 in September as an average per branch, the highest level since September 2007.
The number of houses available for sale also increased from 65 per branch to 72 across August and September while the number of sales remained the same with eight per branch.
Other figures showed the percentage of sales to first time buyers increased, moving from 20% in August to 22% in September, however regional variations still remain.
‘It is encouraging to see that the number of enquiries is increasing, but sellers need to be very realistic when pricing their property in order to secure a sale in what is still a very cautious market,’ said Wendy Evans-Scott, president of the NAEA.
‘The number of First Time Buyers on the market has increased slightly over the course of the month, however our agents are reporting widespread regional variation. Lending still remains a real barrier to homeownership for this part of the market,’ she added.
