October house prices saw an annual increase of 3.1% which takes the average property value in England and Wales to £165,515, Land Registry has reported.

The monthly change from September to October shows a decrease of 0.2%. Repossession volumes decreased by 29% in August 2013 to 1,200 compared with 1,682 in August 2012.

The region in England and Wales which experienced the greatest increase in its average property value over the last 12 months is London with a movement of 8.7%, while Wales experienced the greatest monthly rise with a movement of 2.4%.

The region with the greatest annual price fall is the North East with a decrease of 0.8%; the region also saw the most significant monthly price fall with a movement of -3.1%.

The most up-to-date figures available show that during August 2013 the number of completed house sales in England & Wales increased by 15% to 74,767 compared with 65,014 in August 2012.

The number of properties sold in England and Wales for over £1 million in August 2013 increased by 27% to 1,104 from 871 in August 2012.

The region with the greatest fall in the number of repossession sales was the South East where repossessions dropped by 41% (115 in August 2013 compared with 196 in August 2012).

Nicholas Ayre, managing director of homebuying agency Home Fusion, said: “We are continuing to see a huge rise in London, growing at 8.7% in the last 12 months, showing that London is on a trajectory of its own. With limited supply, huge numbers of houses and flats need to be built to satisfy an intense desire for home ownership in London.

“However what we are seeing are some glimmers of hope outside of London, with increases in Wales, up on a monthly basis by 2.4%, so we might be starting to see a broader price recovery in pockets of the UK. With overall prices down by 0.2% since September, we might be starting to see the end of a sellers’ market and buyers now starting to negotiate harder on prices. Some of the continual press coverage of a “bubble” and adverse commentary about help to buy, may well be encouraging buyers to be far more cautious about the prices they are willing to pay for properties.

“Repossessions decreased in the South East, which might be indicative that, with current low interest rates, people can continue to afford to stay in their properties. This may only be for as long as the Bank of England doesn’t change base rate. People have to think very carefully about any debt because we will see some interest rate correction at some stage. Even 0.5 [percentage points] can be a big increase on a more sizeable mortgage, so buyers must do some financial modelling to ensure affordability.”