House prices in the three months to March were 3.2% higher than the same period last year, according to the latest data from the Halifax.

House prices in the last quarter (January to March) were 1.6% higher than in the preceding three months. However, house prices fell by 1.6% in March, following the surge in February when prices rose by 6%. The average house price now stands at £233,181.

Home sales in February were 2.8% above the previous 12 month average, according to HMRC, with 101,780 home sales in the month, very close to the 5 year average of 101,135.

Demand and supply remains subdued

Demand for and supply of housing remains subdued, according to the RICS UK Residential Market Survey with new enquiries, instructions and sales all falling again in the month.

Russell Galley, Managing Director, Halifax, said: “The average UK house price is now £233,181 following a 1.6% monthly fall in March. This reduction partly corrects the significant growth seen last month and again demonstrates the risk in focusing too heavily on short-term, volatile measures.”