Property values increased by 2.5 per cent in 2009, the first positive annual change recorded since May 2008, according to the Land Registry figures.

With the release of December 2009 data for its house price index, the Land Registry reported property values increased by 0.1 per cent compared with November - the eighth consecutive month that the monthly change was positive.

Along with these figures, the Land Registry reported the average property in England and Wales now stands at £161,783 and that seven regions experienced increases in average prices during the last 12 months.

London saw the greatest annual increase, at 6.1 per cent, while Wales experienced the steepest annual drop, at minus 2.5 per cent.

The publication of Land Registry figures coincided with the latest Nationwide house price index, which recorded an annual increase of 8.6 per cent year-on-year and reported the average house price was £163,481.