The index, which uses published Land Registry figures making its results different from those recently published by Halifax (which uses its own lending figures), revealed static prices last month. On an annual basis, the rate of growth fell with prices increasing by 5.4%, down from 6.1% in February. This is the seventh month in a row the annual rate has fallen and the lowest annual growth rate since April 2006, according to the index.

London saw an annual growth rate of 12.3% (averaged over the last three months), but is continuing to see a downward trend. Apart from London, the Southern regions have seen the largest annual increases – 5.1% in the South West and 7.2% in the South East. However, seven of the 10 regions in England and Wales now have an annual growth rate of below 5%, compared to a year ago when none were in this position.

Dr Peter Williams, chairman of Acadametrics, the organisation that compiled the figures, said the figures should be viewed in the context of the strong performance of the market in recent years, as well as strong fundamentals that exist currently, such as continued demand and limited supply.

He added: “At present, there is nothing to suggest that this downward trend won’t continue in the short term even though the fundamentals of demand and supply, employment and interest rates remain very favourable.”

“Although expectations seem to be set for widespread falls in actual house prices, the facts remain that demand continues and mortgages are still being supplied in volume reflecting the relatively strong economy. The next few months will be critical in terms of likely outcomes with much turning on the part played by the Bank of England.”

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