Source: http://www.independent.co.uk The Land Registry said the annual rate of growth has been falling for 12 months to hit its lowest level since its series began in 2001. Properties lost a further 1.9 per cent of their value during August, the biggest monthly fall ever recorded by the group, to leave the average house costing £174,493. House prices are now falling in all areas of England and Wales on an annual basis. The East is leading the slump, with homes in the region losing 6.7% of their value during the past year, followed by the South West at 6.5% and the East Midlands at 5.9%. Prices in London have dropped by 3.2% during the past year, which the Land Registry said was the first annual fall for the capital it had recorded since this series began.  But even in the North West and Wales, which have seen the smallest drops, prices have still fallen by 2.5% and 2.6% respectively on an annual basis.  The East also saw the biggest price falls on a monthly basis, with prices diving by 3.9% during August. The North West and Wales were the only regions to escape falls in August, with prices in these regions rising by 1.2% and 0.8% respectively, while in the West Midlands prices eased by just 0.1%.  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% fewer than for the same months of 2007.  The number of properties sold for more than £1 million also dived by 48% year-on-year to just 386, down from 738.  Today's figures come days after the British Bankers' Association said net mortgage lending, which strips out redemptions and repayments, dived to just £2.1 billion during August, less than half of July's £4.8 billion, while mortgage approvals for house purchase slumped to a new record low.  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."