House prices fall at fastest rate ever across England and Wales

• Figures highlight 'property apartheid' between London and rest of the country
• North East worst affected with house prices falling by a fifth since 2008

House prices are plunging across England and Wales, with some regions hit by the fastest fall since records began, official figures revealed yesterday.
Only London is saved from the collapse, with house prices continuing to rise sharply.
The figures, from the Land Registry, highlight the ‘property apartheid’ between London and every other region of the country.

Price drop: Of the 10 regions, the worst affected is the North East where prices have fallen by a fifth since the financial crisis began in 2008

Of the ten regions, the worst affected is the North East where prices have fallen by a fifth since the financial crisis began in 2008.
By comparison, prices in London, where the average home costs nearly £350,000, are close to an all-time high.
Over the last year alone, prices in the area have dropped by 7.8 per cent in the North East, the biggest annual drop that the Land Registry has ever recorded in the region.

The figures highlight the 'property apartheid' between London and the rest of the country. In London property prices have increased since last year by 2.1 per cent

The plunge leaves many homeowners in negative equity, which means their mortgage is larger than the current value of their property.
In January 2008, the price of the average home in the North East peaked at £128,705. Today the same home is worth just £101,759.
The North East is particularly affected by the Government’s austerity programme. Around one in three workers are employed by the State.
And the unemployment rate is higher than anywhere else in Britain, with more than one in ten people out of work and failing to find a job.

House prices have dropped by around 10 per cent - or more - in Blackburn, Blackpool, pictured, Kingston upon Hull, Hartlepool, Ceredigion and Durham

In other regions, such as Wales, the North West, West Midlands and Yorkshire and the Humber, house prices have fallen by at least four per cent over the last year.
They have dropped by around 10 per cent – or more – in Blackburn, Blackpool, Kingston upon Hull, Hartlepool, Ceredigion and Durham.
The fall is a disaster for millions of homeowners, who cannot sell their property or can only find a buyer who is prepared to pay far less than the homeowner paid.

House prices tread water as average home costs £166,256

The housing market stalled last month, Nationwide's chief economist said today.
The average price of a home increased by just 0.1 per cent to £166,256 from £165,914 in August.

Economist Robert Gardner said prices had remained flat over the year - and were 0.3 per cent lower than September 2010.
He said: 'Sluggish demand for homes on the back of weak labour market conditions, combined with only a gradual rise in the supply of available properties, has helped to keep property prices fairly stable since the summer of 2010.
'We expect this trend to be maintained over the remainder of 2011, although downside risks have increased as UK and global growth prospects have weakened.'

The number of homeowners finding a buyer has halved over the last five years, according to official figures from HM Revenue and Customs.
In 2006, 1.7million homes were sold. Last year, there were just 880,000 sales, leaving many trapped in homes they want to sell.
Some of the worst affected are people who have had to move for their jobs, and are being forced to rent because they cannot sell their previous home.
For Londoners, the situation could not be more different, with prices up 2.1 per cent over the last year, but up to 10 per cent in some areas.
Experts said yesterday the property market in London is red hot with many homes selling instantly and triggering a bidding war.
Liam Bailey, head of residential research at the estate agency Knight Frank, said: ‘London prices have soared over the past two years, but this has not registered at all in the regions.
‘This housing wealth is not flowing beyond the M25. In fact, it is barely flowing beyond the North and South Circular.’
Peter Rollings, chief executive of the estate agency Marsh & Parsons, said: ‘London is a magnet for people wanting to put their money safely in property.
‘But, if you go 30 miles out of the capital, it is a totally different story.’

Table showing the average prices per property type in England and Wales. The price of all homes are down 2.6 per cent on average

He said a two-bedroom flat in South Kensington, London was put on the market last Friday. By Tuesday, 45 different people had booked a viewing.
Of the six homes sold recently by Marsh & Parsons’s office in Kensington, five were the subject of a bidding war between rival buyers.
Research by Knight Frank shows about half of the homes bought in central London for more than £1million are acquired by foreigners.
They are typically from Russia, the United Arab Emirates, America, France, Singapore or India.
For many British people, London property has been the best place to put their money at a time when savings rates are rock bottom and the stock market has plunged.