Land Registry figures show that the average house price now stands at £165,529, representing a decrease month-on-month of 1.5%.

The capital experienced an annual decrease in its average property value with a fall of -8.6%, taking the average London house price to £320,774

Every region in England and Wales experienced a decrease in their average property values.

The West Midlands sustained the smallest monthly price fall at -0.6%, while Wales saw the biggest decrease at -2.8%.

Figures show that during August 2008 the number of completed house sales fell by 64 per cent to 45,437 from 124,517 in August 2007.