The average house price in the UK fell by 0.5% month-on-month in March, standing at £299,677, Halifax has found.

The bank’s latest house price index comes after house prices increased by 0.3% in February month-on-month.

On an annual basis, house prices increased by 0.8% in March. However, this growth has slowed from an increase of 1.2% in February.

Head of mortgages at Halifax, Amanda Bryden, said the recent slowdown in the housing market reflects the "wide uncertainty" regarding the conflict in the Middle East.

She added: "Concerns about higher energy prices have pushed up inflation expectations, which in turn led to a rise in mortgage rates, reducing confidence that interest rates will be cut this year and dampening the initial momentum in the market seen at the start of the year.

"The effect on house prices will largely depend on how long lasting these pressures prove to be and the wider implications for the economy and unemployment. Mortgage rates are a key factor for buyers, particularly those getting on the ladder for the first time, who are already balancing the challenge of saving a deposit, with the cost of borrowing.

"As a result, many are likely to watch movements in mortgage rates closely, before making a decision on any home purchase. In this environment, professional advice can play an important role in helping people understand their options and make informed decisions that are right for their individual circumstances."

In terms of regions, Northern Ireland continues to lead UK annual house price growth, with average prices increasing by 8.7% to £224,809.

House prices in Wales (£230,909) and Scotland (£222,716) also increased by 1.6% and 4.4% respectively.

In England, stronger price growth remained concentrated in the northern regions. The North East recorded annual growth of 5% to £184,119, while the average house price in the North West increased by 3.1% to £247,442.

Meanwhile, house prices in the South East dropped by 1.9% to £383,573, and London saw average values fall by 1.2% to £536,751.

However, chief commercial officer at Together, Ryan Etchells, said that the market’s "sudden about-turn" in March has "definitely rattled would-be buyers".

He concluded: "Right now, with so much uncertainty around, the property market is likely to stay relatively subdued. That said, once inflation starts to come back down, we might begin to see things returning to normal.

"Buyers pressing ahead with property plans despite the recent market dip should consider working with a specialist lender who can assess their needs on an individual basis and offer more flexible finance based on a case-by-case approach."

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