The average price of a typical property during February was £161,320 and Nationwide admitted that it was difficult to know whether February’s fall in prices was a temporary blip or the start of a new trend.

Martin Gahbauer, chief economist at Nationwide, said the drop in demand and loss of market momentum which was experienced in January due to the ending of the Stamp Duty holiday and the icy weather seemed to have fed into prices during February.

However, he added: “Even without the impact of Stamp Duty changes and the snowy weather, it would have been surprising to see house prices maintain the very strong upward momentum seen for most of 2009. With the longer term stability of the market in mind, it would be a positive development for house prices not to become decoupled from the economic fundamentals.”

“A pause in the upward trend will also be a relief to potential first-time buyers who are no longer benefiting from the stamp duty holiday and for whom affordability had begun to deteriorate again over the course of 2009,” he added.

David Smith, senior partner at property consultancy Carter Jonas, said the market should not be deflated by February’s figures.

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He explained: “Although seasonal factors, the end of the stamp duty holiday and the weather doubtless played a role in February’s dip, prices, at the macro level, were becoming disconnected from the broader economy. In the long term, a minor correction to the recent trend of price growth will bring greater stability to the market.”