Average house prices in England and Wales edged up by 0.2 per cent in January according to the latest house price index from YourMove.
The average property is now worth £301,477.
However, this remains 0.4 per cent lower than at the same time last year.
The firm says that house price falls in London are largely responsible for the decline, with prices in the capital down 4.3 per cent on an annual basis. Despite this the average property in the city is still worth £589,553.
The south east and the north east have also seen annual falls in average prices of 0.2 per cent and 0.7 per cent respectively.
In contrast, the south west (up 3.9 per cent) and north west (3.8 per cent) have seen strong growth, with most other areas enjoying price rises of between 2.3 per cent and 2.6 per cent. However, Yorkshire & the Humber has seen prices increase by a more modest 1.4 per cent.
Sales across all local authorities in the final quarter of 2017 were up by 4 per cent on the same period in 2016, the study finds.
Sales of semi-detached properties increased 5 per cent, while those of detached and terraced homes jumped 4 per cent. However, sales of flats fell 1 per cent, which Your Move suggests is the result of a “significant decline in buy-to-let activity”.
Your Move managing director Oliver Blake says the slowdown in London has now spread to the south east and north east, and that only time will tell if the rest of England and Wales remains resilient.
He adds: “With the focus on supporting those entering the property market – including the abolishment of stamp duty for first-time buyers – we may see more movement in the market which should bring benefits for all.”