House prices in the three months to March were 3.8% higher than in the same period a year ago, according to Halifax.

But this figure was down notably from 5.1% in February, and at its lowest level since May 2013.

The month-to-month figures saw prices remain static between January and February, maintaining the UK’s average property price at £219,755.

Martin Ellis, Halifax housing economist, said: “The annual rate of house price growth has more than halved over the past 12 months. A lengthy period of rapid house price growth has made it increasingly difficult for many to purchase a home as income growth has failed to keep up, which appears to have curbed housing demand.
 
“Nonetheless, the supply of both new homes and existing properties available for sale remains low. This, together with historically very low mortgage rates, is likely to support house price levels over the coming months.”

Tarlochan Garcha, CEO at peer-to-peer property lender, Kuflink, added: “It is far from a seller’s market, with astute buyers winning big discounts.
 
“The result is greater levels of month-to-month volatility and a sense of caution returning to the market, as rising consumer inflation threatens to drive up the cost of living faster than average wage rises.
 
“The days of double-digit price rises have vanished, and while the market fundamentals are robust, price growth will be modest at best.”