Its latest figures showed the average UK house price stands at £208,476.
Regionally, all of the UK’s countries saw property prices fall year-on-year, with England down 1.2% to £216,196, Wales 0.3% to £149,807, Scotland 1.5% to £163,790, and Northern Ireland 4.3% to £144,163.
Yet, the CLG data revealed that, on a monthly basis, house prices went up by 0.6% over August, compared to 0.3% in July and 0.4% in August 2010.
The average price paid by first-time buyers for their home dropped 1.8% over the year to August to £153,158, with prices down 0.3% in August compared to the previous month.
Average house prices fell in eight of the nine English regions over the year to August 2011.
The largest decrease was in the North East by 4.8% while the smallest was in the East by 1.5%.
London registered an annual house price increase of 3.2% and remains the English region with the highest average house price at £347,505.