Figures from Rightmove revealed a 2.6% dip in house prices in November, bringing the average price of a home in England and Wales to £236,761.
Though this figure is in sharp contrast to the rise of 3.5% recorded in October, November normally marks a traditional lull in the housing market, with falls of more than 3% recorded during this month in previous years.
The 2% year-on-year increase in house prices also represents the largest annual rise since 2007.
Across the UK all regions saw a decline in house prices in the month to November, apart from London, with the most significant fall recorded in the North West (down 5.7% to £156,431), followed by the South East (down 4.5% to £297,564).
In the North asking prices fell by 4.2% to £142,200. This dip was 3.8% in the South West, to £254,021, and 3.7% in the West Midlands, to £183,010.
A fall of 3.1% was recorded in both the East Midlands (down to £157,249) and Wales (down to £162,912), while prices declined by 2.8% across Yorkshire and Humberside to £149,226. The smallest decline was recorded in East Anglia, down 2% to £225,533.
The capital continued to buck the downward trend in house prices month-on-month, recording an increase of 1.2%.
“Outside the capital, agents report prices are broadly flat in many parts of the country compared to a year ago,” said Miles Shipside, director and housing market analyst at Rightmove.
“This stability may indicate a sounder springboard for 2013 as the wait goes on for a sustainable recovery in transaction numbers.”