Halifax has reported that house prices in the three months to March were 0.1% higher than in the previous quarter, which is the lowest quarterly rate of change since October 2016.

The annual rate of growth fell further, to 3.8% from February’s 5.1%, the lowest rate since May 2013.

Halifax said the average house price was now £219,755.

Martin Ellis, Halifax housing economist, said: “The annual rate of house price growth has more than halved over the past 12 months. A lengthy period of rapid house price growth has made it increasingly difficult for many to purchase a home as income growth has failed to keep up, which appears to have curbed housing demand.

“Nonetheless, the supply of both new homes and existing properties available for sale remains low. This, together with historically very low mortgage rates, is likely to support house price levels over the coming months.”

Andrew McPhillips, Yorkshire Building Society’s chief economist, added: “House prices have once again risen year-on-year, and have continued to out-pace wage increases, but it’s clear from the figures that the growth is slowing. We are seeing fewer house purchases, with the data showing that fewer homeowners are putting their properties on the market. However, it is likely that prices will continue to remain stable, due to the constraints on supply.

“The continued strong growth of house prices in relation to household incomes has worsened affordability for many first-time buyers and home-owners, as the property market becomes increasingly dislocated from the rest of the UK’s economy. Affordability is likely to worsen as higher inflation hits household finances, as households will have smaller amounts of disposable income and are likely to be even less inclined to commit to an expensive house move.”