Housing transactions have slumped by a third as buyers struggle to secure mortgages and house prices slip, official figures show.

About 72,500 sales were completed each month between November 2007 and February 2008 in England and Wales, sharply down from a monthly average of 103,141 in the same period 12 months ago, figures from the Land Registry show.

These figures are closely watched by policymakers and industry experts as they reflect actual sales registered with the authorities. Each house sale in the UK must be registered with the Land Registry within two months of completion.

Sales of houses worth between £100,000 and £150,000 fell by a third in February, compared with February last year, while sales of properties worth between £150,000 and £200,000 declined by nearly 40 per cent.

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Transactions in the high-end market also slowed, with sales of properties priced between £1.5 million and £2 million falling by 28 per cent.

Howard Archer, of Global Insight, an economic consultancy, said: “The slowing of activity in the housing market is likely to drag prices down further.”

Economists are now forecasting that house prices will fall by 20 per cent or more in the next two years.

House prices fell by 2.5 per cent in May, after a 1.1 per cent decline in April, according to research published this week by Nationwide Building Society, which bases its figures on mortgage approvals.

However the Land Registry said that prices slid by a more modest 0.2percent last month, slowing the annual rate of house price growth to 2.7 per cent, down from 3.6 per cent in March. This is the eighth consecutive monthly fall in house price growth.

The price of an average house fell by £400 in April to £183,626, down from £184,027 in March, the Land Registry said, but detached homes fell in value more quickly with more than £2,600 being wiped off the cost of such a home. The average cost of a detached house is now £275,746, down from £278,355 in March.

Flats and maisonettes held more of their value, declining by less than £1,000 from £171,926 to £171,097.

However, some areas of the UK still experienced house price growth in April. Property prices in the North West of England rose by an average of 0.1 per cent while prices in Manchester rose by 3.2 per cent. The average price of a property in the city is now £115,687. Inhabitants of nearby St Helens were less fortunate, however. Prices in the borough fell by 4.1 per cent to £123,297.

While the average price of a London property fell by 1.2 per cent, residents of Kensington and Chelsea enjoyed a 1percent increase to the value of their home. Homeowners in Hackney have seen the value of their homes rise by 18.6 per cent in the past year to £375,822, up from from £316,829 in April last year.

While the value of property in Wandsworth is 11.3 per cent higher than in April last year, it fell by 0.8 per cent last month.

Changing values

Monthly house price growth in April (annual in brackets)

South East 0.5% (4.3%)
North East 0.4% (2.4%)
South West 0.2% (2.7%)
East 0.2% (3.4%)
North West 0.1% (2.9%)
Yorkshire & the Humber -0.4% (2.5%)
London -0.5% (6.8%)
East Midlands -0.7% (-0.9%)
Wales -1% -(1.4%)
West Midlands -1.2% (-0.1%)

Source: Land Registry