Prices were also up by 1.2% between April and May this year.
This took the average house price to £285,000.
Four nations
In England, house prices saw an annual rise of 2.2%, taking the average property value to £302,000.
Yorkshire and the Humber experienced the greatest annual price rise, up by 3.9%.
London saw the lowest annual price growth, with a rise of 0.2%.
In Wales, house prices rose by 2.4%, taking the average property value to £216,000.
House prices in Scotland were up by 2.5% to £191,000.
The average house price in Northern Ireland increased by 4% in the year to Q1 to reach £178,499.
Richard Harrison, head of mortgages at Atom Bank, said: “Three months of straight house price increases is a good indication of the growing confidence in the market. This data predates the calling of the general election, however, which may have had a temporary effect on buyer demand and with it house price movements.
“The general election inevitably brought some uncertainty to the market, but the fact that we had such a definitive result means that some sellers and buyers will feel more comfortable pushing on with plans.
“Eyes will now turn to the Bank of England, and when it will look to start reducing bank base rate, as reduced rates will also serve to boost buyer confidence. With inflation continuing to move in the right direction, it’s simply a question of when, not if.”
