The gap between house prices in Shropshire is dramatically increasing – with the average cost of a property rising across the county but falling in Telford & Wrekin.

House prices in Shropshire have risen by more than £6,000 in the last seven months, but in the borough of Telford & Wrekin the impact of the recession is continuing to take its toll.

According to the Land Registry, house prices in the Shropshire Council area have increased since June last year when the average house sold for £156,278. Last month the figure was £162,907.

During the same period, prices in Telford fell by £1,200 to £128,871.

Today experts said the fluctuations in the Land Registry’s House Price Index were bringing mixed fortunes.

Councillor Roger Evans, Shropshire Council’s champion for affordable housing, said: “It’s good news that the economy is picking up but bad news for those at the bottom of the property ladder.

“I’m doing my best to enable more affordable housing to be constructed both for rented and shared ownership.”

Shrewsbury estate agent Gwen Howell said some sellers were their own worst enemy and were preventing an upswing in the market.

Mrs Howell, of Alexanders, said: “It’s a dual market at the moment. We have a stock of properties that have been on the market for ever. Vendors have an unrealistic idea of what their properties are worth and are sticking it out until the market improves.

“The big problem at the moment is a shortage of supply. We don’t have people putting their properties on speculatively, because of the cost of Home Information Packs.

“Properties that come onto the market, however, when correctly priced, can be sold within a few days.”

She added: “Many people have low, or no, equity. They fear they cannot raise the finance required.”

Nationally Land Registry figures showed that seven areas in England and Wales saw monthly house price rises during January, with London experiencing the biggest jump of 3.9 per cent, followed by the West Midlands, including Shropshire, at 2.8 per cent and the South East at 2.5 per cent.

By Andy Richardson