Biggest monthly fall in prices for almost a year

House prices in England and Wales fell by 0.2 per cent in September according to the Land Registry - the biggest monthly fall in almost a year.

This means that annual house price inflation according to the Registry has dropped from the August level of 8.4 per cent to September's total of 7.2 per cent. That is the first time since May 2013 that the yearly rate has gone down on the Registry's measure.

The average house price is now £177,299, still well down on the £181,324 recorded back in November 2007.

Reaction from agents has been mixed.

LSL's David Newnes sees one upside. There were 11 per cent more first-time buyer completions than a year ago, in part due to Help to Buy. With many regions still in a delicate balance of recovery, the government should be mindful of heeding any calls to curtail the scheme he says.

Nick Leeming, chairman of Jackson-Stops & Staff, says: The majority of areas in England and Wales are still below their value in 2007, demonstrating that rampant price increases are confined to micro-markets in London and the south-east.

Peter Rollings of Marsh & Parsons in London says the capital is still showing healthy annual growth but warns that talk of a mansion tax and other populist wealth taxes threaten to erode London's reputation as a location for the world's rich to purchase homes.

Here are the regional figures:

- East 1.4% (monthly) 10.9% (annual)

- South West 0.7% 7.1%

- Wales 0.4% 4.3%

- South East down 0.2% 9.7%

- North East down 0.3% 1.6%

- North West down 0.5% 4.3%

- London down 0.7% 18.4%

- East Midlands down 0.8% 6.0%

- West Midlands down 1.3% 4.3%

- Yorkshire/Humber down 2.2% 1.4%

All-England & Wales down 0.2% 7.2%