The Assetz House Price Watch, which compiles monthly figures taken from the major house price indices, including Halifax, Nationwide and Rightmove, found the average house price is now £194,168, compared to £185,499 in January 2009.
Average house prices are currently at the highest level since October 2008 at £194,735 and although the rate of growth is slowing slightly, house prices are still likely to end 2010 with a 5% annual growth.
House prices are now only 9.7% below the peak house price of £215,089, which was recorded in October 2007.
Assetz said it expects the annual rise in February to be around 5%, up on January’s figure of 4.7% as a result of increased asking prices.
Stuart Law, chief executive of Assetz, commented: “The latest Assetz House Price Watch shows that the monthly rate of house price growth slowed over Christmas but is now rising again.”