The average house price in England and Wales is now £165,314. While May heralded the seventh consecutive month of positive annual house price growth, it is the first time since March 2009 that annual growth has not increased on the month before.

The monthly fall is the first negative movement since April 2009.

All regions in England and Wales experienced increases in average property values over the last 12 months, with London recording the highest annual change of 14.2%.

The region with the smallest annual price rise was the North East at 1.8%.

The South East experienced the greatest monthly rise at 0.9%, while the East Midlands had the most significant monthly price fall in May, down 3.6%.

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The Land Registry’s latest figures also revealed that during March 2010, the number of completed house sales in England and Wales rose by 37% to 48,577 from 35,449 in March 2009.

David Smith, senior partner at property consultancy Carter Jonas, said: “The removal of Home Information Packs has improved stock levels in recent weeks, which is a positive for the market, although there naturally remains uncertainty surrounding impending public sector cuts, higher taxes and the ever-present threat of rate rises, accentuated by the first vote for a rise on the MPC for nearly two years.

“Although the market as a whole is hardening at or around its current level, sought-after properties in desirable locations may see further price rises, whereas undifferentiated properties in certain areas may see falls.”