Outside of London house prices continued to fall while London again saw prices increase due to demand for housing in the Olympic host city according to data from the Land Registry.  September house prices in London rose by 0.3 per cent when compared to August and 2.7 per cent when compared with September 2010.  House prices in the northeast area of England experienced a 3.9 per cent fall in prices while the annual decline fell to 8.2 per cent.

The average home in England and Wales fell to £162,109.  The demand for homes in London failed to lift house prices above the decline level as the average in England and Wales fell slightly at 0.3 per cent for September when compared to the previous month and 2.6 per cent when compared to last year.

Peter Maskell, director of estate agents office Brock Taylor, remarked that the housing market is currently made up of many more homeowners who must sell. 

"While the number of new instructions is tailing off, many of those putting their houses on the market now are pricing aggressively.

"Many will be motivated by death, divorce or debt in the family. Their desire for a quick sale will often force them to set prices low.

"Sellers who put a property on the market a while ago and who still hope for a better price are seeing them stay on the shelf much longer - sometimes for many months.

"So many estate agents are finding that they have stock hanging around their books for long periods. And without an impetus from the market, many will be stuck with these unsold homes for a while yet."