House prices fell by -1.1% in March, the Halifax has reported.

This was only the third monthly decline in the past 15 months; this is in contrast to the previous 15 months when there were eight monthly price falls.

The Halifax cautioned that monthly movements can be volatile and the three month-on-three month change is a more reliable indicator of the underlying trend.

However, house prices in the latest three months (January 2014-March 2014) were 2.3% higher than in the final quarter of 2013. This is within the range of 1.8% – 2.3% recorded for this measure since June 2013.

Prices in the three months to March were 8.7% higher than in the same three months a year earlier. This continued the upward trend in the annual rate.

Stephen Noakes, Halifax mortgages director, said: “Housing demand continues to be supported by an improving economic outlook, growth in employment, rising consumer confidence and low interest rates.

“The recent strengthening in house price is increasing the amount of equity that many homeowners have in their home. This will potentially encourage and enable more owners to put their property on the market for sale over the coming year, therefore boosting supply and easing pressure on prices.”