HOUSE prices in Wales rose in August, new figures have revealed.

Average prices went up by 0.8 per cent in that month.

But the rise comes on the back of successive monthly falls, albeit lower than in other parts of the country.

And overall in Wales and England, there was a record 4.6 per cent fall during the year to the end of August.

The Land Registry has produced the figures and said the annual rate of growth had been falling for 12 months and had now hit its lowest level since 2001.

House prices are now falling in all areas of Wales and England on an annual basis.

The East is leading the slump, with homes in the region losing 6.7 per cent of their value during the past year, followed by the South West at 6.5 per cent and the East Midlands at 5.9 per cent.

Prices in London have dropped by 3.2 per cent during the past year, which the Land Registry said was the first annual fall for the capital it had recorded since 2001

Even in the North West and Wales, which have seen the smallest drops, prices have still fallen by 2.5 per cent and 2.6 per cent respectively on an annual basis.

The two regions were, however, the only ones to escape falls in August.

Sales volumes are continuing to run at nearly half of last year's level as would-be buyers either delay moving to see how much further house prices fall, or struggle to raise the mortgage they need to complete a deal.

Just 58,763 homes changed hands between March and June, the latest period for which figures are available, 46 per cent fewer than for the same months of 2007.

Howard Archer, chief UK and European economist at Global Insight, said: "Clearly, there is no let up in the major downward pressure on house activity and prices stemming from the damaging mix of stretched buyer affordability and very tight lending conditions.

"Widespread expectations that house prices will continue to fall markedly for some considerable time to come is also having a serious negative impact, as is heightened concern over the economic outlook and job prospects."