Property prices during February were 1.9% up on the same period in the previous year. If London and the South East are excluded from these figures average growth was 0.6% in the 12 month spell, driven by a 2.4% increase in the North East region.

However, the national average masks an alarming 7.7% fall in house values in Northern Ireland as well as smaller falls in Scotland (-1.2%) and the North West (-0.1%).

The ONS said that house prices were static compared to the previous month with the average UK house valued at £233,000, a figure that falls to £186,000 when discounting the capital city and surrounding region.

Northern Ireland remains the cheapest area of the country to buy a house, with the average property valued at £125,000. This compares to an average of £395,000 in London.

Prices paid by first-time buyers have grown 1.6% in the past year, versus a 2.1% rise for home movers in the same period.

Jonathan Harris, director of mortgage broker Anderson Harris, said: “London continues to lead the way, with a 5.9% rise, while prices fell by 7.7% in Northern Ireland. Strip London and the South East out of the equation and you get a very different picture. The national average is therefore useful as a very general indicator of what is going on but not much more than this.

“Worryingly, first-time buyers continue to pay more for their first home, with prices 1.6%higher than in February 2012. While homeowners will welcome higher house prices, those struggling to get on the housing ladder for the first time are unlikely to feel the same.”

Danny Waters, CEO Enterprise Finance, added: “There is no reason to think prices will rise or fall in any material way during the rest of 2013.

“Until there is more clarity on the direction of the economy, consumers will remain cautious and that will curtail demand.”