UK house prices dipped by 0.5% in March, a drop of £1,575 with average property price now £296,699, the Halifax house price index reveals.

The latest data shows that annual growth remains at 2.8%, unchanged from February.

The price trends were markedly different in certain regions, specifically in Northern Ireland where house prices have risen at the fastest pace at 6.6%.

Scotland recorded the second strongest house price growth, increasing 4.3% last month, compared to 3.8% in February. The average house price is now £213,750.

Property prices in Wales were also up by 3.7% in March to an average of £227,332.

In England, Yorkshire and Humberside also saw strong growth, up by 4.2% year on year, with properties now costing an average £215,807.

London saw the slowest annual house price growth, from 1.5% in February to 1.1% in March. However, it holds the top spot for the highest average house price in the UK, at £543,370.

Halifax head of mortgages Amanda Bryden says: “House prices rose in January as buyers rushed to beat the March stamp duty deadline. However, with those deals now completing, demand is returning to normal and new applications slowing.”

“Our customers completed more house sales in March than in January and February combined, including the busiest single day on record. Following this burst of activity, house prices, which remain near record highs, unsurprisingly fell back last month.”

“Looking ahead, potential buyers still face challenges from the new normal of higher borrowing costs, a limited supply of available properties to choose from, and an uncertain economic outlook.”

“However, with further base rate cuts anticipated alongside positive wage growth, mortgage affordability should continue to improve gradually, and therefore we still expect a modest rise in house prices this year.”