28 September 2012 Last updated at 06:38 ET

Runaway London house prices stall, says Land Registry

House prices can be affected by local factors as well as the economic outlook

The pace of house price rises in London stalled in August, although property values in the capital have still risen by 5% over the year.

The annual increase is still the highest of any region in England and Wales, according to the Land Registry.

Prices in London were unchanged from July to August. The north-east of England saw the biggest monthly rise, up by 0.8%.

The biggest fall in property prices was in Wales, down 2.4%.

This meant the fall in values over the 12 months to the end of August was 3.2%, the steepest drop of any area in England and Wales.

Housing market activity has been subdued for some time, with relatively few transactions. This means that the market can look very different not only between regions, but also between neighbourhoods.

On average in England and Wales, house prices were unchanged in August compared with July. They were 0.7% higher than in August 2011, the Land Registry figures show.

This meant the average home in England and Wales was valued at £163,376.