Land Registry reports 8% fall in house prices

Homeowners in the UK have seen a further reduction in the value of their properties, new figures have revealed.

According to the Land Registry, the average value of a house in England and Wales is now £168,814.

This is 2.2 per cent down on the amount recorded last month and eight per cent less than the figure this time last year.

The prevailing trend is reflective of the continuing downturn in the UK economy, which has impacted on property sales.

Figures from the Land Registry show that between April and July 2008, the average number of house sales per month dropped to less than 58,000.

Meanwhile, the Royal Institution of Chartered Surveyors has welcomed new figures from the Bank of England showing a slight recovery in the number of mortgage approvals.

The organisation said that while the increase is "subdued", it represents a "step in the right direction".