UK house prices fell by 0.5% in March, a drop of £1,575, says the Halifax. 

Despite this, the annual growth rate remained steady at 2.8%, with the typical UK property now valued at £296,699.

Amanda Bryden, head of mortgages at the lender, says: “House prices rose in January as buyers rushed to beat the March stamp duty deadline. However, with those deals now completing, demand is returning to normal and new applications slowing. Our customers completed more house sales in March than in January and February combined, including the busiest single day on record. Following this burst of activity, house prices, which remain near record highs, unsurprisingly fell back last month.

“Looking ahead, potential buyers still face challenges from the new normal of higher borrowing costs, a limited supply of available properties to choose from, and an uncertain economic outlook.

“However, with further base rate cuts anticipated alongside positive wage growth, mortgage affordability should continue to improve gradually, and therefore we still expect a modest rise in house prices this year.”

Other data from the Halifax shows that Northern Ireland continues to record the strongest annual property price growth of any nation or region, rising by 6.6% in March. House prices average £206,620.

Scotland recorded the second strongest house price growth, increasing to 4.3% last month, compared to 3.8% in February. The average house price is now £213,750.

Property prices in Wales were also up 3.7% in March to an average of £227,332.

In England, Yorkshire and Humberside also saw strong growth, up 4.2% year on year, with properties now costing an average £215,807.

London saw the slowest annual house price growth, from 1.5% in February to 1.1% in March. The capital remains the top spot for the highest average house price in the UK, at £543,370.