House prices in England and Wales fell by 1.4% or £4,600 to £328,434 in August, marking the largest monthly drop since 2008, the latest index from e.surv reveals.

There was a particularly dramatic decline in the average price of flats, which was down by 7.9% month on month.

Yet average house prices were still 5% higher than a year ago.

Northwest England had the highest annual growth rate at 13.8% and in most other regions prices were up by at least 10% year on year, with the exception of the southeast and east of England, which saw slightly lower growth of 7.9% and 9% respectively.

Only London recorded an annual dip with prices down by 0.4%.

E.surv director Richard Sexton says: “House prices remain resilient in the round – all the more surprising when you consider the market was expecting some of the heat in the market might have been dampened by the stamp duty relief taper in England at the end of June.

“We may conclude therefore that the continuing stamp duty holiday may be influencing prices at specific points. 

“Any reduction in prices has been at the top end but we continue to have good demand from those buyers seeking to secure properties priced between £125,000 and £250,000 as their stamp duty relief remains in place until the end of September.”

He adds: “It’s worth noting that, in terms of property types, the percentage price growth of detached, semi-detached and terraced homes has enjoyed a broadly similar upward trajectory over the last couple of years. 

“The average prices of detached and semi-detached homes have been growing at a rate more than 10% for all bar the latest two months of 2021.

“Some believe that the end of the stamp duty holiday at the end of September might soften increases further but the real unknown is the impact of the withdrawal of government support such as furlough; however, on the evidence to date, the employment market has remained remarkably resilient.”