Any signs of a boost to house prices have been scuppered after average values fell last month following a 6% spike between January and February.

The latest Halifax House Price Index revealed that average property values fell 1.8% on a monthly basis in March to £233,181.

Annual growth also slowed from 2.8% to 2.6%.

Russell Galley, managing director at Halifax, said: “The need to build up a deposit before getting a mortgage is still a challenge for many looking to buy a property.

“However, the combined effect of fewer houses for sale and fewer people looking to buy continues to support prices in the long term.

“These conflicting challenges, when combined with the ongoing uncertainty around Brexit, have had an impact across the country but most notably in London, meaning that we continue to expect subdued price growth for the time being.”

Commenting on the data, Jonathan Hopper, managing director of buying agent Garrington Property Finders, said: “February’s stratospheric growth figure always seemed too good to be true.

“March’s sharp correction confirms it was a blip rather than a long-term bounce – and just how volatile the month-on-month figures can be in a market so starved of supply.

“While the Brexit saga is far from resolved, the threat of a chaotic, cliff edge exit has at least begun to wane; and in the most Brexit-exposed markets this has injected a hint of renewed momentum.

“Months of repressed demand mean that if the Brexit clouds begin to part in any meaningful way – which to the market effectively means a Brexit deal being agreed or no Brexit – we should see things take off like a cork out of a bottle.

“The traditional spring bounce has been largely absent so far this year. But some are beginning to hope that it may turn out to be delayed rather than damaged.”