Britain's property sector may be enjoying its best market conditions for six years as the housing revival gathers pace, but a report has revealed that prices fell by 0.1% in the North East.
The report, carried out by property analyst Hometrack, found that although overall prices grew across a third of the country in August, prices edged 0.1% lower in the North East and remained static across Yorkshire and Humberside and the East Midlands.
"Overall we expect demand to continue to expand over the remainder of the year so long as the outlook for the economy and mortgage rates remains unchanged.
"A lack of housing for sale is set to remain a feature of the market and this will keep an upward pressure on prices in the near term."
House prices saw a national uplift for the first time in nine months in February but fell by 0.2% in the North East, figures suggest.
In the North East and Yorkshire the number of new buyers registering with agents rose by less than 5% over February, way below the 14% national average.
Hometrack said it is unclear whether this was due to the recent bad weather or if it is a more serious sign of weak levels of demand from would-be buyers.
Prices increased by 0.1% month-on-month across England and Wales, marking the first upturn since May last year.
The market saw a seasonal bounce back in activity in February across the country, with a 14% increase in new buyers registering with estate agents and an 8.7% rise in the number of new homes listed for sale.
"Prices remain under downward pressure in northern regions where the trend is tipped towards price falls."
– Richard Donnell, director of research at Hometrack
The Land Registry has revealed that the North East recorded the highest monthly house price rise across England and Wales in November - with a 2.4% increase during the month.
On a year-on-year basis, the region has also seen the biggest fall, with a 2.9% drop taking average prices to £98,304.
Across England and Wales, house prices increased by 0.3% month-on-month in November to reach £161,490, pushing them 0.9% higher than a year earlier, the Land Registry said.
But sales were more sluggish, with 57,971 transactions taking place between June and September 2012, representing a drop of around 7% on the same period in 2011.
"Rising national house prices will provide cheer for homeowners who have seen their equity dwindle since the initial credit crunch, but the falling number of moves taking place highlights the topsy-turvy nature of last year's housing market.
Even as late as September, the market was struggling to come to terms with distractions earlier in the summer, which hampered the number of buyers in a position to finalise moves in the month.
But recent improvements in mortgage lending, combined with rising national house prices point towards a more positive end to the year and start to 2013."
– Peter Rollings, CEO of estate agent Marsh & Parsons