London saw the greatest monthly increase, a rise of 2.5%, while the average property value in the capital over the last 12 months rose by 7.1%. The North West saw the greatest annual price fall, at 4.2%.

SPF Private Clients chief executive Mark Harris said the index offset more negative lending figures from the Council of Mortgage Lenders and the British Bankers Association: “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.”

The Land Registry figures indicate more significant growth than the UK-wide 0.5% Nationwide figure last month.

Its latest transaction figures also indicate an increase in activity in the housing market – the number of completed house sales in November 2012 increased 1% on the same time the previous year while properties sold for over £1m jumped by 19%.