Its March house price index revealed that the average house price in England and Wales was £160,996.
London experienced an increase in its average property value over the last 12 months with an annual price change increase of 0.8%.
The only region which experienced a monthly rise was the North West with a movement of 0.7%.
The North East experienced the greatest annual price fall with a decrease of -9.3%, while Wales is the region with the most significant monthly price fall with a movement of -3.3%.
The Land Registry figures also showed that in January 2011 the number of completed house sales in England and Wales rose by 2% to 36,425 from 35,809 in January 2010.
The number of properties sold in England and Wales for over £1m increased by 6% between January 2010 and January 2011, from 460 to 486.
Nick Leeming, business development director of property website Zoopla, said: “The lowest end of the property market is in a state of rigor mortis because of the lack of affordable mortgages, and until this section of the market springs back into life prices will remain deflated all the way up the property chain.
“The demand to buy is there – over a million first-time buyers are trying to piece together deposits to meet stringent lending criteria but lenders need to seriously address the lack of higher LTV products available to them.”
He added: “London is a different beast and usually outperforms the rest of the market, but with a 1% monthly fall even prices in the capital are feeling the sting from suppressed transactions levels.
“Transactions are on the up, but it’s buy-to-let landlords and cash investors who are propping up the figures rather than owner-occupiers and it’s these buyers we need more of in order to reinvigorate the market.”
