The property market in London continues to leave the rest of England and Wales trailing in its wake.
Figures from the Land Registry have revealed that the average price of a home in
England and Wales fell by 0.4% in May, taking the average price to £161,823.
It means that over the last 12 months, the average home has fallen by 2.2% in value, which is the largest annual decline recorded since October 2009.
But the picture in the capital tells a different story. In May, average prices rose by 0.2%, taking the annual price rise to 2.9% in London.
And within London, it is the trendy area of Islington that has seen the largest price rises, with a home in the borough increasing by an average of 8.5% in price over the year to May.
It is the only region in England and Wales to record a rise rather than a fall in prices over the last 12 months, and means that a buyer in the capital can expect to shell out just shy of £345,000.
All other regions recorded a fall in prices, with the most pronounced losses being suffered in the North East, where an average of 6.9% was shaved off the worth of homes in the last year.
In May alone, it was Wales that took the biggest hit, with an average fall of 3.5% in house prices.
Figures also show that sales volumes have fallen over the past year.
From December 2010 to March 2011, the number of houses sold in England and Wales averaged 44,314 a month.
It represents a significant fall from the same period last year when sales volumes averaged 52,060 a month.
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