House prices grew at their lowest rate last month since May 2013, figures from Halifax have revealed.

The lender’s House Price Index for March shows average property prices reached £219,755.

This was up 3.8% year-on-year, growing at a slower rate than the 5.1% recorded in February 2017, and the lowest level since May 2013.

Prices barely moved over the previous three months, increasing just 0.1%.

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.”

Responding to the figures, Nicholas Finn, executive director of Garrington Property Finders, said: “What began as a soft landing has slowed to a gentle taxi off the runway.

“A year ago the property market was soaring, now it is stuck on terra firma – with annual price growth little over a third of what it was in March 2016.

“While the acute supply shortage is propping up prices to a degree, much of the market has become listless, with pockets of extremes.

“Some areas are seeing double-digit reductions, while others are plagued by gazumping.”