The Land Registry House Price Index recorded a 0.2% rise in house prices in January.
House prices increased by 0.2% in January, however the annual growth in home values declined by 0.9%, according to the latest figures from the Land Registry.
This means that the average property in the UK now costs £163,177.
As expected, different regions of the experienced varying levels of price changes. London saw the highest annual price change with growth at 2.4%.
The region with the greatest annual price fall is Wales with a decrease of 6.1 per cent. That region also experienced the most significant monthly price fall with a movement of 4.2 per cent.
Of most concern to Estate Agents is the fact that the number of completed house sales fell by 12% in November 2010, indicating that mortgage finance is still difficult to secure.
As the Land Registry House Price Index is collated from all residential property sales in the UK, it is widely viewed as the most accurate barometer of the housing market.