While some areas saw price drops (such as the North West, which saw a decrease of 1.9% over the month), London continued to avoid the effects of the economic climate and saw an increase of 2.5% monthly - 7.1% over the course of the year.
Repossession volumes decreased by 11 per cent in November 2012 to 1,589 compared with 1,777 in November 2011.
Ben Madden, managing director of lettings specialist, Thorgills, has commented:
"For many, the continued resilience of the property market given the still dire economy will be baffling. For average prices in England and Wales to have risen by 1% between December and January is extraordinary. Clearly prices in many areas of the country, specifically the North East and North West, remain under sustained pressure.
"The UK average is being driven artificially high by London, which has seen growth of 7.1% over the past year. London, as ever, continues to bulldoze its way through the bleak economic climate. For London house prices to have risen 2.5% in just one month is quite something. A major driver of prices in the capital at present is the massive demand for rental property.
"Landlords are competing hard for property as they know the rents currently achievable are exceptional. This is driving prices ever higher. Many first-time buyers are being swept aside by the growing tide of landlords seeking the high returns on offer."
Mark Harris, chief executive of mortgage broker SPF Private Clients, says:
"January property prices edged higher, according to the Land Registry, offsetting more negative lending figures from the Council of Mortgage Lenders and British Bankers Association for the same month. However, the national average masks significant regional differences, with prices falling in parts of the country and London continuing to outstrip the rest. We expect this situation to continue throughout this year.
"On the lending front, the picture is increasingly positive with some of the cheapest mortgages ever seen. Lenders continue to cut rates and offer more choice at higher loan-to-values as well, which is boosting the number of first-time buyers.
"There was a welcome drop in the number of repossessions in November 2012 compared with the same month a year ago but any repossession is one too many. It is also worrying that so many homeowners can still be repossessed while interest rates are at historic lows. More needs to be done, and lenders need to continue to show forbearance towards borrowers."
Paul Hunt, managing director of Phoebus Software said:
“January figures reflect the fact that the mortgage market is in the best shape it has been in for some time. These UK-wide prices – no longer restricted to the capital, although that’s obviously still booming – are largely due to improved funding conditions as lenders loosen the purse-strings and do their bit for the mortgage market. Borrowers are benefitting from more attractive mortgage deals while falling rates are bringing in more first time buyers too. As well as giving credit to lenders, we should acknowledge that the Bank of England’s Funding for Lending Scheme has had a big impact. For once, the government seems to be delivering.”
