Average UK house prices fell by 0.3% between February and March, dragging annual house price inflation to 3.5% from 4.5% over the same period, said Nationwide.

This takes the average price of a UK property to £207,308.

Robert Gardner, Nationwide’s chief economist, said that the UK house price picture was mixed over the first quarter of 2017: “Six regions saw the pace of house price growth accelerate, six saw a deceleration and one (East Midlands) recorded the same rate as the previous quarter.
 
“The South of England continued to see slightly stronger price growth than the North of England, but there was a further narrowing in the differential. Northern Ireland saw a slight pickup in annual house price growth, while conditions remained relatively subdued in Scotland and Wales.”

Jonathan Hopper, managing director of Garrington Property Finders, added: “Whether you regard it as a dive or just a dip, March’s abrupt reversal in house price momentum is a wake up call.

“It’s nearly two years since the month-on-month number was last in negative territory. But now, as then, the surprise fall in house prices was symptomatic of a listless market rather than a profound shift.”

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