<p>House price rose by 0.1% in England and Wales in January, says Hometrack, but this was as a result of prices rising in just 7% of the country reflecting a sluggish start to the year as the market shrugs off the normal seasonal effects after an unexpectedly strong end to 2009.</p> <p>The figures reveal how small parts of the market - where supply is scarce and demand is backed with cash - are driving prices up. However in large swathes of the country, away from the south east and south west, prices are flat.</p> <p>Richard Donnell, director of research at Hometrack, says that there is a danger that the general health of the housing market is being overstated. "The market bounceback of 2009 was distinctly one dimensional," he said, "and the outlook for 2010 is less certain."</p> <p>However Donnell added that the improvement in market activity and prices during 2009 means the market is starting from a higher base than 12 months ago. "Today the proportion of the asking price being achieved is 93.5% compared to 88% at the start of 2009. We expect a continued scarcity of housing for sale in the year ahead , which itself will act …