Simultaneously, number of homes sold fell to the low levels seen at the height of recession, according to a survey by Acadametrics.
Property sales fell 52 per cent to 36,000 in January from the previous month. The average price of transactions in England and Wales was 9.7 per cent higher in February than a year earlier.
January's completed transactions accounted for the third lowest monthly figure since 1995.
Acadametrics founder David Thorpe said the average cost of a home in England and Wales was up 1.9 per cent from January.
"The start of 2010 was difficult for a number of reasons, and the question is whether this is a blip or the start of a new trend," said Peter Williams, a member of the research group.
Transaction levels were restricted by the seasonal slowdown in property buying at the start of the year, coupled with the winter spell and the end of stamp duty relief.
The research also found that prices have risen for the 10th consecutive month, accelerating from the 1.4 per cent rise in January despite the lack of strong buyer activity.
The Acadametrics index is based on the prices of all homes sold in England and Wales, employing methodology used by the US S&P/Case-Shiller price index.
The measure was previously known as the Financial Times House Price Index.
