March house prices were down 0.4% on February 2014, the Land Registry has reported.

However, house prices last month were up 5.6% year-on-year.

The average house price in England and Wales is now £169,124 compared with the peak of £181,618 in November 2007.

Repossession volumes decreased by 31% in January 2014 to 979 compared with 1,420 in January 2013.

Unsurprisingly, the region in England and Wales which experienced the greatest increase in its average property value over the last 12 months is London with a movement of 12.4%.

Both East and North East regions experienced the greatest monthly rise with a movement of 1.1 per cent.

In contrast, Wales experienced the only annual price fall of 1.6%. It also saw the most significant monthly price fall with a movement of -4.2%.

David Brown, commercial director of LSL Property Services, said: “Price rises may have slowed slightly, but this isn’t a backwards step for the market. Year-on-year house price growth remains strong and buyer sentiment is high. In terms of volumes, the UK property market continues to show significant and sustained growth.

“Numbers matter as much as prices. Providing homes is a vital service for our economy, and the first function of the property industry. Alongside such a pick-up in transaction volumes, marginally slower price rises will benefit aspiring homeowners looking to get on the ladder.

“The rental market is already leading the way on affordability, and the next big step will be for wages to grow in tandem with house prices too. For that to happen we need to build considerably more homes, and the economy to maintain its current trajectory – but things are going in the right direction.”