The Land Registry’s January Market Trend Data has shown an annual price increase of 7.1% which takes the average property value in England and Wales to £191,812.
Monthly house prices have risen by 2.5% since December 2015.
The regional data indicates that London experienced the greatest increase in its average property value over the last 12 months with a movement of 13.9%, while Wales experienced the greatest monthly growth with an increase of 3.7%.
The North East saw the lowest annual price growth with an increase of 0.2% and also saw the most significant monthly price fall with a decrease of 1.6%.
Meanwhile, the number of completed house sales in England and Wales fell by 2% to 72,167 compared with 73,282 in November 2014.
The number of properties sold in England and Wales for more than £1 million increased by 14% to 1,091 from 953 a year earlier
repossessions in England and Wales fell by 54% to 346 compared with 753 in November 2014.
The region with the greatest fall in the number of repossession sales was the South West with a fall of 78% from November 2014.
David Finlay, distribution director at the Northview Group, said: “Today’s competitive housing market has lead to house prices rocketing in January, which is largely due to a lack of supply. Limited provisions of housing have resulted in an increasing number of homebuyers being drawn to the same properties, creating a demand-centric market.
“Prospective homeowners are therefore under pressure to move quickly when looking to purchase a property, with slow mortgage application processes often being the difference between getting a new home and missing out to another buyer.
“For the mortgage industry to meet the needs of customers in this environment, advanced technology needs to become part of the mainstream market. Real-time case tracking and smart software can be adopted to help speed up transactions, providing homebuyers with the quick decisions needed to secure their dream home.”