This means that the price was unchanged compared with January 2012 and that a typical home is now worth approximately £162,245.
Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said:
"UK house prices increased by 0.5% in January, though prices were unchanged compared with January 2012. While activity in the housing market remains muted by historic standards, there have been tentative signs of a pick up in activity in recent months. The Funding for Lending Scheme has achieved some success in bringing down mortgage rates, with some signs of a pick up in lending activity.
"Hopefully, the momentum will continue to build in the months ahead, though much will depend on whether the wider economic environment improves. Progress is likely to be relatively slow on that front if recent trends are any guide, with the UK economy shrinking for the fourth time in five quarters in Q4 2012."
Ben Thompson, MD Legal & General Mortgage Club, commented:
"The fact that UK house prices have remained unchanged from January 2012, with a nominal 0.5% growth since December 2012 is hardly surprising.
“In our research report into the New Normal in the Housing Market, analysis shows that between 2010 and 2019, house price growth is expected to be 25% - the weakest figure on record since the 1950s.
“This modest growth reflects a lack of consumer confidence in their financial future, alongside continued restrictive borrowing conditions; two of the main factors that the New Normal report found to effect people’s decision to buy.
“Unfortunately, these factors won’t disappear overnight, however lenders are taking steps in the right direction to improve lending criteria which will in turn help to grow the market. Products such as the Barclay’s Family Springboard are a great example of this, and we need to see other lenders think along the same lines.
“We expect the market to remain broadly flat until mid-2013, after which house prices should start to climb, reaching their 2007 peak of £227,000 by 2015.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, says:
"While the national average house price rose again in January compared with the previous month, figures show that the vast majority of regions saw price falls throughout 2012. London continues to buck the trend, with heightened competition in parts of the capital, particularly prime central London.
"Transactions continue to be well down on the height of the market, contributing to significant price discrepancies in some areas.
"On the lending front, the picture continues to improve with some of the cheapest mortgages ever seen. Lenders continue to cut rates and offer more choice at higher loan-to-values. Lending volumes are slowing ticking up month by month, with renewed vigour from lenders keen to do more lending this year than last.
"There is a lot riding on the Government's Funding for Lending scheme. It is no overnight solution but a slow burner, and the early signs are encouraging."
