Yorkshire house prices slump despite national gains

The national increase of 0.3%, half the size of the gain the previous month, left the average home costing 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%, down from 6.8% in July.

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% 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 6% fall in transaction levels.

Some economists have predicted the housing market is heading for a double dip, as demand from potential buyers eases, while a rising number of homes are being put up for sale.

However, 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 also masked wide regional variations, with prices falling by 1.4% in Yorkshire and the Humber in August, while they also dropped in the East, North West, North East and South West.

At the other end of the scale, the value of a home rose by 1.2% in the West Midlands and 1.1% in the East Midlands.

London is continuing to see the strongest annual house price growth at 11.4%, followed by 9.4% in the South East.

But property prices edged ahead by just 1.6% and 1.8% respectively in the North East and the North West during the year to the end of August.

On a brighter note, the Land Registry reported a 17% 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 when volumes were boosted by the approaching end of the previous government's stamp duty holiday.

However, transaction figures from HMRC and data on mortgage lending and approvals for house purchase suggest the increase in activity failed to continue during the summer.