1. ITV Report

Region suffers biggest house price falls

The North West recorded the biggest year-on-year fall in house prices. Photo: Dave Thompson, Press Association Images

The North West has recorded the biggest drop in house prices, according to new figures.

New figures from Land Registry show although house prices increased last month across England and Wales, many regions saw a fall year-on-year, with the worst hit being the North West.

The latest report show overall prices rose by 0.8 per cent in July compared with the previous month to reach £162,900, which is also an annual increase of 0.3 per cent.

But the North West recorded the biggest year-on-year fall, with a 3.9 per cent decrease taking typical prices to £109,235.

Prices fell year-on-year in many regions too - it fell by 1.3 per cent in Wales, by 0.8 per cent in the West Midlands, by 2.5 per cent in Yorkshire and the Humber, by 1.9 per cent in the South West and by 3.8 per cent in the North East.

The remaining regions which did see prices increase annually saw much more modest rises than those recorded in London, which saw an increase of 6.5 per cent, due mainly to strong interest from overseas buyers.

Other areas to see a rise are the East Midlands by 0.4 per cent year-on-year, the South East, which rose by 0.7 per cent and the East, which rose by 0.8 per cent.

"The Land Registry data is less gloomy than some of the other house price indices and yet the housing market in parts of the country really is suffering.

"The jury is still out on whether the Bank of England's emergency funding will have the desired effect."

– Mark Harris, mortgage broker

A report from property analyst, Hometrack, published earlier this week said prices are expected to remain under downward pressure for the rest of the year, as growth in the number of homes for sale outstrips potential buyers.

The Bank of England and the Treasury recently launched a "funding for lending" scheme to free up the flow of credit.

However, analysts have said they have seen little evidence so far that this has increased the availability of mortgages for people with lower deposits.