According to Nationwide’s latest house price index, values were 0.8% higher than March 2012, marking the first positive growth in annual terms for over a year. Prices also grew 0.6% over the past three months compared to the previous quarter.

However, UK house prices remained unchanged in March compared to the previous month. The average house price, not seasonally adjusted, was £164,630.

The Land Registry also announced figures for February house prices today. Prices rose 0.2% on the previous month and the average house price in England and Wales was £162,606.

Nationwide chief economist Robert Gardner said: “In recent months buyer demand has been supported by healthy rates of employment growth, as well as the Funding for Lending Scheme, which has helped to reduce mortgage costs and increase credit availability. At the same time housing supply has remained relatively constrained.

“The outlook for the housing market is unusually uncertain at present, in part because the prospects for the wider economy are unclear, but also as the impact of a number of policy initiatives is hard to gauge.“

SPF Private Clients chief executive Mark Harris said: “For the first time in more than a year, house prices rose but the monthly numbers are less impressive, suggesting the market is mostly flat.

“London continues to buck the trend, with heightened competition in parts of the capital, particularly prime central London, and some significant price rises due to the sheer levels of demand.

“However, transactions continue to be well down on the height of the market, contributing to significant price discrepancies in some areas.”

Dragonfly Property Finance chief executive Jonathan Samuels said confidence was anything other than flat: “With the Funding for Lending Scheme appearing to have had an impact, and Help to Buy on the horizon, there is a degree of expectation in the market.

“The worry is that sellers are becoming overly confident and are overestimating the value of their homes.”

Earlier this week, an Office of Budget Responsibility economist warned MPs the government’s mortgage guarantee scheme could raise house prices without increasing the supply of new homes.