New figures from the Land Registry show a sharp fall in house price inflation in London in the third quarter of 2004.

According to the government department鈥檚 figures, the average property in the capital is now worth 拢287,470, 3.4% more than in the second quarter. There was an increase of 6.7% between the first and second quarters of this year.

But away from the South-east there is little evidence of a slowdown yet. The average British house price rose 6.7% to 拢187,971; faster than the 5.7% increase seen between the first and second quarters.

In the Land Registry鈥檚 list of places still seeing a rise in price increases, Wales took seven of the top 10 spots, with Anglesey at the top of the pile. In the year to September, the average price of a house on the island went from just under 拢90,000 to 拢130,000, an increase of almost 50%.

The Land Registry鈥檚 figures are based on actual transactions, rather than agreed sales.