Region bucks national trend as house prices show drop of 1.4pc

House prices in England and Wales edged ahead by 0.3 per cent in August overall to stand at their highest level for two years, although prices in Yorkshire and the Humber fell 1.4 per cent, figures have shown.

The overall increase meant that the average home cost 167,423, a level last seen in August 2008, according to the Land Registry.

The group said it was the fifth consecutive month house prices had risen, although the annual rate of growth fell to 6.7 per cent, down from 6.8 per cent in July.

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The figures contrast with a run of gloomy data on the housing market reported by other groups for August.

Nationwide said prices fell by 0.9 per cent during the month, while the Council of Mortgage Lenders said lending was at its lowest level for August for a decade, and HM Revenue & Customs reported a six per cent fall in transaction levels.

The Land Registry index tends to lag other indexes by around three months, as it measures prices at the end of the home buying process, so the latest downturn in the market is not yet being reflected in its data.

The headline figures masked wide regional variations, with prices falling by 1.4 per cent in Yorkshire and the Humber in August, while they also dropped in the East, North West, North East and South West.

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At the other end of the scale, the value of a home rose by 1.2 per cent in the West Midlands and 1.1 per cent in the East Midlands. London is continuing to see the strongest annual house price growth at 11.4 per cent, followed by 9.4 per cent in the South East.

On a brighter note, the Land Registry reported a 17 per cent jump in property transactions in June, the latest month for which figures are available.

A total of 59,390 homes changed hands during the month, the highest level since December.