According to the report from Halifax Bank of Scotland, house prices in the three months to March were 3.2% higher than in the same three months a year earlier. Economists had expected a 2.3% increase.

• In the latest quarter (January to March) house prices were 1.6% higher than in the preceding three months (October to December)

• On a monthly basis, house prices fell by 1.6%

• The average house price is now £233,181

“The average UK house price is now £233,181 following a 1.6% monthly fall in March. This reduction partly corrects the significant growth seen last month and again demonstrates the risk in focusing too heavily on short-term, volatile measures. Industry-wide figures show that the number of mortgages being approved remains around 40% below prefinancial crisis levels, and we know that lower levels of activity can lead to bigger price movements.” Russell Galley, Managing Director, Halifax, said: