The data from the Land Registry shows that more than 56,000 residential property sales in England and Wales were lodged for registration in February.
The South East topped the table of regional applications with 250,045 in the month.
However the February data shows an annual price decrease of 0.6%.
Paul Hunt, managing director of Phoebus Software said: “The modest rise in house prices last month is a vindication of the proactive approach mortgage lenders have taken over the last few months.
“The CML announced recently that gross mortgage lending has risen for seven consecutive months as the combination of low interest rates and steady house prices have provided an opportunity to lenders to make highly affordable finance available to a growing number of house purchasers.
“But we’re not out of the woods yet. On an annual basis, property prices are still falling and the return of stamp duty for first-time buyers, as well as the hefty levy on properties at the top end of the market announced in the budget will put downward pressure on property values.
“Whether lenders are able to maintain their confidence in the UK’s mortgage borrowers in a more hostile fiscal environment is by no means certain.
“But the MPC’s ongoing commitment to a doveish monetary policy and the implementation of the government’s New Buy scheme provide good grounds for optimism that buyers will continue to be able to access the finance with which to support prices.”
Capital Economics says the data illustrates the growing divide between the north and the south: “Today’s Land Registry data highlight both the strength of house prices in London as well as their weakness in the North East.
“That divergence might well increase further this year, but we remain sceptical of arguments that house prices in the South have permanently decoupled from prices in the North.”
