Following a Welsh property boom during the first half of 2004, recent figures released by the Halifax reveal that the average house price in Wales fell by 6.2% to £133,775, an average price fall of £3000 per month between October and December, worst than anywhere else in Britain.

Despite most of Britain reporting a downward trend in the property market, the report revealed that the north of England and Northern Ireland have reversed the trend, by recording increases of 3% and 6.4% respectively.

The north-south house price divide is now at its lowest for seven years, according to the Halifax. Over the past year, prices in London have risen by 3.2% and 7.2% in the south-east, compared with a 27.3% rise in Manchester.