HOUSE values in the region are continuing to rise as the market reflected the first fall in national prices since November 2001.

Evidence of a North-South divide in the house market continue to emerge as the latest figures revealed that the South-East has felt the slowdown the most.

Overall prices in England and Wales fell by 0.1 per cent in April, continuing 11 months of steady decline in house price inflation since May's peak of 2.6 per cent, according to property website Hometrack.

However, 24 counties reported rises, with the best being 0.6 per cent in County Durham, followed by 0.4 per cent on Teesside and in South Wales, and 0.3 per cent in Mid-Wales and North Wales. Ten counties reported no price changes.

Counties that saw the largest growth in the past are leading the falls, with the average price for the ten worst-affected counties being £211,090, compared with those with the biggest rises at £91.810.

In the South-East, 23 counties reported falls, the highest being 0.9 per cent in Surrey, 0.8 per cent in Berkshire, 0.6 per cent in East Sussex and 0.5 per cent in West Sussex.

Hometrack also found little excess demand to increase prices over the next few months as the number of new buyers rose by less than one per cent this month, against an eight per cent rise in the number of new properties listed.

The study put the average price for England and Wales at £135,300.