However, on an annual basis, average property prices were down 1.0% on January 2011.
London experienced the largest increase in average property value over the last 12 months with growth of 2.9% and recorded the highest monthly rise in January as well of 2.5%.
The North East experienced the greatest annual price fall with a decrease of 4.5%, while the North West saw the most significant monthly price fall, down 2.1%.
The most up-to-date Land Registry figures showed that, during November 2011, the number of completed house sales in England and Wales increased by 3% to 57,967 compared to 56,312 in November 2010.
The number of properties sold in England and Wales for over £1m in November 2011 decreased by 4% to 524 from 548 in November 2010.
Russell Quirk, director of the estate agents emoov.co.uk, said that the moderate rise in house prices in January could be the result of first-time buyers taking advantage of the Stamp Duty holiday.
He added: “We are also seeing a steady but seismic shift in the sort of people who are buying property. For four years, most of those moving were people who had to do so. Many ‘discretionary’ movers were put off by fears of a second property crash.
“While these Land Registry figures show that prices are still down on where they were a year ago, January’s price rise hints at a steady return of confidence.
“The coiled spring of anticipation is slowly beginning to unwind as more would-be buyers see buoyancy return to the market.”
