Average UK house prices fell by 0.6% in March, according to the official UK house price index from the Land Registry.

The index, which records actual sales, lags behind other house price indices that record asking prices or approvals, by a couple of months.

However, it is regarded as an accurate snapshot of the market.

It puts the UK average property price at £215,848 in March, which is 4.1% higher than a year earlier, a drop of 1.5 percentage points from February.

Prices in London were just 1.5% higher than a year before.

Sales down

In its economic statement the Land Registry pointed to subdued housing demand, and static property transactions.

Only Wales saw prices rise in March (1.4%) while England (-0.6), Northern Ireland (0.8%) and Scotland (-1%) all recorded falls.

In London prices dropped 1.5% in March, while the West Midlands recorded a small 0.3% rise.

Jonathan Hopper, managing director of Garrington Property Finders, said: “These official figures suggest the slowdown is sharper and started earlier than first thought.

“April’s surprise election announcement applied a dab to the property market’s brakes, but this data confirms it had already dropped down a gear in March.

“While the speed and severity of the fall in annual price growth – down to its lowest level for more than three years – will alarm some sellers, such national averages mask the wildly different conditions at opposite ends of the market.

“Properties in some regions continue to see double-digit price reductions, while at certain price points in the most in-demand areas, gazumping is back with a vengeance.

“Nevertheless, the broader trend is undeniable. Even London finds itself in a position it is unaccustomed to – close to the bottom of the pile.”