The data from the flagship Land Registry's House Price Index also shows an annual price increase of 0.9%.
The region in England and Wales which experienced the greatest increase in its average property value over the last 12 months is London with a rise of 9.6%. London also experienced the greatest monthly rise with an increase of 2.5%.
The region with the greatest annual price fall is the North East with a decrease of 5.5% and the North West saw the most significant monthly price fall with a decrease of 2.5%.
The most up to date figures available show that during January 2013, the number of completed house sales in England and Wales decreased by 5% to 41,763 compared with 43,752 in January 2012.
The number of properties sold in England and Wales for over £1 million in January 2013 increased by 28% to 610 from 476 in January 2012.
The data also shows that there were 1,317 repossessions in England and Wales during January 2013. Repossession volumes decreased by 18% in January 2013 to 1,317 compared with 1,602 in January 2012.
London and Wales were the only regions to see an increase in repossessions of 28% and 24% respectively in January 2013 compared with January 2012.
The figures are encouraging, according to David Newnes, director of LSL Property Services, owners of Your Move and Reeds Rains. ‘Momentum is starting to show some potential of building in the housing market. The first time buyer market is showing signs it is ready to fizz again after a very flat couple of years, and the market is no longer dominated by equity rich buyers,’ he said.
‘In coming months we should see an increasing number of lower income buyers, and the market should begin to recover from the bottom up. But there is still a long way to go in improving first time buyer activity compared to pre-2008 levels. While the FLS is helping lower mortgage rates and boost mortgage availability, its impact is being mitigated by stringent regulatory requirements making higher LTV lending too difficult,’ he explained.
‘The increased focus on SME lending may well mean banks choose to divert the cheaper funds away from mortgage lending and towards small businesses but the housing market still needs all the help it can get. Since the housing market dip there are now some three million housing transactions that have not happened. The pent up demand is growing,’ he added.
