The average house price in England and Wales is now £160,384.
The December data also shows that house prices decreased by 1.3% compared to December 2010.
The only region in England and Wales to experience an increase in its average property value over the 12 months to Dec 2011 was London with a movement of 2.8%.
The most up-to-date figures for completed house sales show that in October 2011 house sales in England and Wales decreased by 6% to 55,309 compared to 58,634 in October 2010. The number of properties sold in England and Wales for over £1 million in October 2011 decreased by 10% to 525 from 582 in October 2010.
Peter Rollings, chief executive officer of Marsh & Parsons, said: “Stagnant house prices in December and falling transactions capped a fairly dismal year for the national housing market.
“Economic uncertainty and fears over job losses have reined in home moves in many parts of the country, and undermined prices outside London. But there are indications to suggest that 2012 may be more encouraging for buyers.
“Mortgage lending has been steadily improving as lenders learn to operate in a more constrained financial environment, and for those with deposits, rates are actually cheaper than a year ago in many cases.
“With the stamp duty holiday set to expire in less than two months, activity should pick up in the short-term as determined first-time buyers hurry to complete.”
