It means the average house price in England and Wales is now £162,561. But prices are still up slightly by 1.1% on an annual basis.
London has seen the biggest price increase in the last year, up by 5.5% and Wales saw the greatest monthly rise with an increase of 0.5%.
The North East experienced the greatest annual price fall with a decrease of 3.2% and Yorkshire and The Humber saw the most significant monthly price fall with a decrease of 2.2%.
The most up to date figures available show that during July 2012, the number of completed house sales in England and Wales decreased by 9% to 56,509 compared with 62,303 in July 2011.
The number of properties sold in England and Wales for over £1 million in July 2012 increased by 13% to 817 from 725 in July 2011.
On a monthly basis most regions saw prices fall. In Yorkshire and Humber prices fell 2.2% to an average of £115,843. The North East saw prices fall by 1.8% to £99,163 and the East Midlands saw prices fall 1.3% to £122,794.
In the West Midlands prices fell by 0.9% to £128,391, in the North West they fell 0.8% to £110,235, in the South East they fell by 0.4% to £210,301 and in London average prices fell by 0.2% to £363,802.
In the East they increased by 0.1% to £174,969, in the South West they were up 0.1% to 172,825 and in Wales they increased by 0.5% to £117,264.
