The housing market remained “subdued” in March as house prices increased just 0.1 per cent.
According to Nationwide, annual house price growth slowed for the seventh month in a row to 5.1 per cent from 5.7 per cent February.
The average price of a UK home now stands at £189,454 – 2 per cent above the pre-crisis peak.
Nationwide chief economist Robert Gardner says: “Economic conditions have remained supportive, with labour market conditions continuing to improve and mortgage interest rates close to all-time lows.
“Nevertheless, the pace of housing market activity has remained subdued, with the number of mortgages approved for house purchase in January around 20 per cent below the level prevailing one year ago.”
But while prices have levelled off across the UK, London and the South East continued to show strong growth.
Over the past year, prices in the capital have increased 17.8 per cent to £408,780, while the south east saw prices increase 10.6 per cent to £235,747.
House prices changes: