The Land Registry for England and Wales reported that property prices eased off in the latter stages of 2006, with house price inflation falling slightly to 6.8% in November from 7.0% in October.

The Land Registry said this reflected “calmer conditions” in the English and Welsh property markets, property ownership still being the main saving and investment method for British consumers.

The survey assessed the average price of a home as £172,006, with the cost of terraced houses rising fastest as people made their UK investment in property into this type of accommodation.

London recorded the most obvious slowdown, with the annual rate of increase easing from 9.6% to 7.8%, as average prices dropped in November by 0.6% across the 32 London boroughs.

However, the figures for London are in contrast to other surveys that suggest the capital is a property price hotspot at the moment, particularly in light of the massive bonuses earned by investment bankers in the City last year.

The biggest regional increase has been in East Anglia, where prices went up by 8%, although the biggest rise in a unitary authority was in Neath/Port Talbot, where prices rose by 13.1%, as more people made their saving and investment in property there.

The smallest rise in house prices was recorded in the East Midlands, where the average price rose just 4.7%.