The average house price fell slightly at the end of 2005, despite an upturn in market activity, figures announced today by the Land Registry reveal.

The average house price fell back to £191,327 in the last three months of 2005, from £194,589 in the third quarter. But house prices were 4.6% higher than the average of £182,920 a year earlier.

The data appears to contradict surveys from mortgage lenders that had indicated an upturn in the housing market during the final months of 2005.

Sales rose by 12.6% during the three months, with 258,763 properties changing hands.

At the same time, the number of homes sold for more than £1 million also increased to 948, up from 765 during the final three months of 2004. Of these, 521 were in London, where the price of the average property increased by 4.54% from £276,698 in the last quarter of 2004, to £289,248 in the last quarter of 2005.

Price growth remained strongest in northern regions. The North led the way with a year-on-year jump of 8.5%, followed by the North West at 7.7% and Yorkshire and the Humber at 6.9%.

The Welsh market also continued to perform well, with prices 6.3% higher during the period than they had been in the final quarter of 2004.

In Greater London prices rose by 4.5%, while in the South East they increased by 3.1%. The capital also saw a 15% rise in the number of properties changing hands, while sales of homes for seven figures also rose to 521, up from 436. The East and West Midlands both saw growth of around 2.5% during the final quarter of the year, compared with the same three months of 2004.

In East Anglia prices were 1.6% higher and in the South West they crept ahead by just 0.5%, although this was enough to push the average cost of homes there above the £200,000 mark. The South West saw the biggest rise in sales – up 20.5% in the fourth quarter of 2005.

The cheapest place to buy property remains Kingston upon Hull, with the average home there costing £82,102, followed by Blaenau Gwent in Wales at £89,125. Homes are most expensive in Kensington and Chelsea, where they change hands for an average of £752,760, and Westminster at £590,661.