Central London is the only region to still record positive year-on-year growth (3.24%).
Outside the Capital, prices fell again for the seventh successive month, bringing average asking prices down 0.39% on January 2009.
Andrew Smith, Primelocation.com's Head of Research, comments: "This is the fourth successive month that the Prime Index has recorded growth in the London market, a trend which is being driven by a decline in stock levels and the return of positive annual growth in Central London.
"Central London has always been a magnet for international capital and at the moment lower prices and the weaker pound are attracting overseas buyers in search of bargains. The recent cut in Base Rate to 0.5% will keep the pressure on the pound, so this is a trend which we expect to continue in the months ahead.
"Interestingly, the markets closest to London have yet to show any signs of stabilisation. Indeed, over the past six months the South East and the South West have been the poorest regional performers.
"Both regions have long been popular with City buyers and a flood of bonus money has buoyed these markets in recent years. But the credit crunch has slowed this specific trend and this has had a negative impact on prices.
"With overseas buyers likely to remain focused on Prime Central London, we do not expect a significant ripple effect from the Capital into surrounding regions until confidence among UK buyers begins to pick up."
