House prices fell in August by 0.3 per cent to £162, 347 - a figure that is 2.6 per cent lower than a year ago.

This was the third fall in the past four months indicating that very little has changed in the property market.

However the Land Registry did say that prices in London have continued to diverge strongly from other areas of the country, resulting in London being the only region to have experienced an increase in house prices in the past year. According to the figures property prices now average £348, 686 in the capital.

This is in stark contrast to prices in the North East of England and Wales where they have fallen by 7.8 per cent and 5.5 per cent respectively.

Lucy Pendleton of estate agents James Pendleton explained that London's "unique climate" is what enables it to stand out "as the most resilient local market in the UK." She added "while London prices float upwards due to a shortage of property and strong demand, not least from wealthy foreign buyers attracted by the cheap pound, for the rest of the UK, it is not quite so positive."

The reason behind the continuing stagnation has been largely due to the rationing of mortgage funds by banks and building societies since the banking crisis unfolded in 2008.