HOUSE prices in parts of Merseyside are at their lowest level for more than six years as the number of sales remains less than one-third of the levels seen before the recession.

St Helens was the fourth worst hit area in the country – behind Blaenau Gwent, Redcar and Cleveland and Denbighshire – while prices in Wirral also fell in 2010.

But figures from the Land Registry published yesterday showed prices in Liverpool bounced back by £7,000 on average last year. Its 4.9% annual gain was more than three times the national average.

Liverpool had a really strong spring – in April, its year-on-year prices were down 9%, but by July was into positive territory.

The city’s average house price rose slightly last month to £104,654 to consolidate its strong annual growth. However, its average remains more than £20,000 below the peak seen in June, 2007.

Alan Bevan, director of Liverpool estate agents City Residential, believes that the low level of sales can have a distorting effect on the figures, although the general trend still holds.

He said: “The key thing is the low transaction levels. When transaction levels are at this low ebb, we treat the figures with caution.

“Transaction levels in a good market are two to three times higher – we could be trying to read something into them that isn’t there.

“It doesn’t surprise me that Liverpool has outdone most of the North West, but I wouldn’t get too excited about the figures. Liverpool has done OK, while towns like St Helens might not have weathered the storm quite as well.”

House prices in St Helens were down 5.2% – to £100,872, the lowest level since June, 2004 – while Wirral prices fell 1.2%. Halton and Knowsley showed slight rises, up 0.4% and 0.7% respectively, while there was stronger growth in Cheshire West and Chester, of 2.0%, and Sefton, where prices rose 3.0%.

Mr Bevan added: “Our belief is we are bouncing along the bottom and we might do that for the next 12-18 months.

“Looking at the last two to three recessions, it does take a long time to recover the previous highs. I think that will be the case here.

“The first four-five years post-recession, it tends to bounce along the bottom, trying to keep up with inflation.”

Nationally, house prices showed a 1.5% annual rise, boosted by a strong 6% rise in the London market, where each borough showed an increase during 2010.

However, prices fell for the fourth month in a row during December as the property market continued to be hit by the mortgage drought and economic uncertainty.