According to the latest Hometrack National Housing Survey, London was the only region of the country to post a house price increase this month, with prices rising a modest 0.1% during the month, well down on the 0.3% rise recorded in June.

All other areas of the UK posted falls apart from East Anglia, which remained flat month-on-month. The biggest house price falls came in the North East and the North West where prices fell 0.5% and 0.3% respectively.

Across the country, the average time taken to sell a house rose to 9.5 weeks with final sale prices reaching 93.1% of asking price.

Demand for properties fell by 2.1% in July, with the South East posting the greatest decline at 3.4%. London also faltered, with new registrations slumping by 2.4%.

This was blamed on the number of new properties coming into the market, which has grown by 5.2% during the last three months. Over the same period demand fell by 2.2%.

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Richard Donnell, director of research at Hometrack, commented: “The survey shows that the housing markets of London and the South East – areas that have supported headline price growth since the beginning of the year – are starting to slow as demand weakens and supply rises.

“Weaker demand is to be expected over the summer months but compared to previous years, the seasonal slowdown has started earlier and developed more rapidly than in previous years. This reflects growing concern over the UK’s economy and the deepening Eurozone crisis.”