'Double-digit' house price drop

The Land Registry figures look at actual sale prices over time

House prices in England and Wales fell by 10.1% year-on-year in October, the Land Registry has said.

Prices dropped by 1.5% compared with September - the 14th consecutive monthly fall, the figures show.

The average price of a house in England and Wales stood at £165,529, a similar level to the summer of 2006.

The Land Registry figures show that flats and maisonettes showed the biggest annual price falls, with Wales showing the sharpest dip.

The annual fall in house prices was 12% in Wales.

Slowdown

The data confirms that activity in the housing sector has plunged this year.

Annual regional house price falls West Midlands: 9.3% North West: 9.2% East Midlands: 10.9% East: 11.2% South East: 10.2% Yorkshire and Humber: 10.1% London: 8.6% North East: 10.4% South West: 11.5% Wales: 12% source: Land Registry

In May to August, there was an average of 54,488 transactions every month, down from 118,165 compared with the same period last year.

The figures show that transaction levels have dropped by a similar level, irrespective of the value of the properties.

In his report on the mortgage market published earlier this week, Sir James Crosby warned that the squeeze on the availability of home loans would continue to "unprecedented" levels without government intervention.

This could lead to a continued downward spiral in house prices and sales that would have a significant effect on the depth of a recession.

Spending

The Land Registry data shows that every region of England and Wales has witnessed annual house price falls.

On a more local level, average prices in the Isle of Anglesey, and in Neath Port Talbot Borough Council have actually risen by 1% in the year to October.

In contrast, Conwy experienced the biggest annual price fall, down 12.9%.

The slump in the housing market has already had an effect on the wider economy, according to Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (Rics).

"The lack of housing turnover is now being very visibly reflected in a drop in high street spending on consumer durables. The collapse of MFI is indicative of this squeeze," he said.

The Land Registry data lags slightly behind house price surveys by the biggest lenders, Nationwide and Halifax, who base their findings on prices agreed by buyers and sellers after a survey.

On Thursday, Nationwide said house prices fell 0.4% in November, compared with October. This was a 13.9% annual fall.