Figures from property firm LSL found house prices grew 5.6% in the year to March, the slowest increase in two years, indicating a slowing housing market.

The average house price in England and Wales now stands at £275,123 following a rise of £14,620 in the last 12 months.

The firm said despite the slower growth, this was the highest average property price it had ever recorded.

London and the surrounding areas saw the biggest slump in growth, with much of the slowdown attributed to the rise in stamp duty for the most expensive properties.

LSL also said many buyers were fearful a mansion tax would be introduced following the general election in May.

However, price growth in the capital was still ahead of the rest of the country. Excluding London, the average property price grew 4.9% across the rest of England and Wales.

Sales increased 11.6% during March, but this growth is only half what would normally be expected at this point of the year.

During the first three months of 2015 sales were down 5% compared to a year ago.

Richard Sexton, director of e.surv chartered surveyors, said: “With homes on average worth £14,620 more than a year ago, it’s a far cry from anything worth lamenting from a bird’s eye view – even if people on the ground might feel somewhat differently.

“While price inflation simply isn’t as rapid as it was, the stamina is still strong, and prices edged forward another 0.2% in March.”