The February data from Land Registry’s House Price Index shows an annual price increase of 5.3% which takes the average property value in England and Wales to £170,000.

The monthly change from January to February shows an increase of 0.7%. Repossession volumes decreased by 24% in December 2013 to 966 compared with 1,278 in December 2012.

The region in England and Wales which experienced the greatest increase in its average property value over the last 12 months is London with a movement of 13.8%. Wales experienced the greatest monthly rise with a movement of 1.6%.

The North East experienced the only annual price fall of 1.3% and also saw the most significant monthly price fall with a movement of -1.4%.

The most up-to-date figures available show that during December 2013 the number of completed house sales in England & Wales increased by 33% to 75,182 compared with 56,697 in December 2012.

The number of properties sold in England and Wales for over £1 million in December 2013 increased by 44% to 898 from 624 in December 2012. Wales is the only region with an increase in repossession sales in December 2013 (up 6%)

Oliver Atkinson, director of the online estate agents urbansalesandlettings.co.uk, said: “The capital once again captures the headlines. Prices in London are bordering on the doolally.

“The extreme lack of supply in the capital provides a degree of protection to prices but when the market rises like it is, you have to factor in more risk.

“What this data once again underlines is that there are very much two property markets in the UK at present. One that’s foot to the floor and one that’s still flagging.

“In the North, especially the North East, the market is still weak. Sellers are surprised when their properties don’t command the prices they think they will.

“For completed house sales in December of last year to be 33% higher than the previous year underlines the strength of demand. People are piling into property in the way that they were pre-2008.

“Last week’s Budget could also have a major impact on the housing market and create even more of a divide between the haves and the have-nots.

“With the pensions revolution announced in the Budget, we’re likely to see more retiree landlords enter the market, which will place property even further out of reach for first time buyers and accelerate the growth of the renter nation.”