Data queries house price fall

Figures released by the government claim house prices have fallen by far less than many other surveys have suggested.

According to many lenders, house prices have tumbled by 11% since their peak in August 2007 with some predicting overall drops of 30% in the current economic downturn.

But research by the Communities and Local Government department (DCLG) suggested prices in July were only down 0.3% on the figure for 12 months earlier, although there was a surprise 1% rise in July compared to June.

It also revealed strong regional variations, with prices down by 0.8% in Wales and 10.3% in Northern Ireland, while prices in Scotland rose by 3.6%.

The apparent discrepancy could be explained by different methodologies, with lenders using the prices quoted when they agree mortgages and DCLG using the actual sale price.