West Midlands house prices last month fell 1.2 per cent – the largest fall across England and Wales, against an average fall of 0.2 per cent.
On an annual basis regional house prices fell 0.1 per cent compared with a year ago, according to the latest figures released by the Land Registry.
Across England and Wales the annual growth in house prices fell for the eighth month in a row, falling from 3.6 per cent in March to 2.7 per cent in April, according to official data.
In April the average price of a home in England and Wales fell by 0.2 per cent to £183,626, the Registry said.
The Land Registry figures showed five regions of falling prices during April, with East Midlands prices down 0.7 per cent on a monthly basis in April, an improvement on the decrease of 2.1 per cent in March.
The West and East Midlands were two of only three regions to experience decreases in their average prices over the last 12 months.
Prices in the East Midlands fell 0.9 per cent, with Wales recording a 1.4 per cent drop. The West Midlands recorded the third biggest decrease on an annual basis, down 0.1 per cent.
The average house price for the West Midlands during April stood at £151,399, down from £153, 294 in March, which compares with £151,532 a ago. In the East Midlands the average price for April was 142,323.
In Birmingham house prices fell 0.7 per cent on a monthly basis to £131,543. However, they still rose 2.4 per cent compared with 12 months ago.
Harvey Williams, spokesman for the Royal Institution of Chartered Surveyors (RICS), said: “The Land Registry figures cover all residential property transactions. There are many indices out there and all may tell a different story.”
“The encouraging factor for the West Midlands is that, in the last fortnight and over the Bank Holiday period, there has been a noticeable increase in the footfall at chartered surveyor estate agents’ offices.
"The number of properties on the market is seven per cent higher than a month a ago and enquiries for homes appear to rising. This is a promising sign and can only be good if the log jam in the housing market is going to be reduced.”
The South-east was the best performer, with prices up 0.5 per cent on the month and 4.3 per cent ahead of a year earlier. The average property in the region now costs £229,289.
London – previously the only region of England and Wales where annual price inflation remained in double digits –slipped 0.5 per cent over the month, leaving annual growth at 6.8 per cent. The average house price for property in the capital was £350, 925, down form the highest level of £355, 676 in January.
The figures follow shock data from the Nationwide building society on Thursday which showed a 2.5 per cent fall in property values during May – leaving prices 4.4 per cent lower than a year ago.
But these steep falls are yet to show up in the official data as the Land Registry measures completed sales rather than the point when mortgage applications are approved, as with Nationwide and Halifax figures.
The Land Registry figures also offered further evidence of the fall-off in mortgage availability as banks tighten up on lending following the credit crunch.
But Mr Williams sees a more positive situation in the Midlands, adding: “The crucial element, the absolutely crucial element, is the availability of mortgage finance. There is evidence that some lending institutions are beginning to offer mortgage products at slightly reduced rates, but while welcome, that is some way off previous levels. However it is a step in the right direction.
“RICS hopes that this is better news for the housing market in general and first time buyers in particular.”