Data from the Office for National Statistics (ONS) showed that over the month, values dropped by 0.4%. This was compared to a monthly growth of 1.2% over the same period last year.
All four nations showed price growth over the last year, with the strongest in Northern Ireland, where house prices jumped 7.4% in the year to Q1 to average £198,015.
In Wales, average house prices rose 2.9% to £213,240, and in Scotland, there was a 1.6% increase to £186,582.
Price growth was the most muted in England, where a 0.6% annual rise was recorded, averaging £289,946.
On a monthly basis, house prices in Northern Ireland and Wales were higher, with growths of 1.5% and 0.6% respectively. Meanwhile, Scotland saw values fall by 0.2% since the previous month, and England recorded a 0.5% decline.
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Kevin Shaw, national sales managing director of LRG, said the fact that average house prices were “essentially unchanged” was not bad news but a sign of stability.
Shaw added: “A flat market is far healthier than a volatile one. If house prices are not moving significantly while wages are still rising, then in real terms, property is becoming a little more affordable. That is good news, particularly for first-time buyers.”
Price falls across most of England
All regions in England saw prices fall over the month, except the East Midlands, with a 0.3% rise to £214,747, and the South East, where prices remained flat at £378,515.
Annually, the East Midlands saw an increase of 0.7% and prices in the South East fell by 0.8%.
London had the biggest annual decline in England, with prices falling 2.1% to £542,065. This represented a 0.3% monthly drop.
This was followed by the North East, where values fell by 1.2% year-on-year to £161,629, representing a 0.9% monthly decline.
Jonathan Hopper, CEO of Garrington Property Finders, said London was no longer an outlier as prices fell across England and Scotland, and seven of the nine English regions saw negative growth.
Hopper said: “The most striking reversal of fortune was in the North East. Annual price growth here stood at 3.6% in February, but by the end of March, it had plunged to an annual drop of 1.2%.
“On an annual basis, prices are still falling faster in London than anywhere else. But the pace of the capital’s fall has slowed, from 3.3% in February to 2.1% in March.
“But as London’s price correction begins to ease, it could be just getting started elsewhere. Anywhere where the number of homes for sale exceeds the number of serious buyers could see prices slip in coming months.
“The imbalance in supply and demand, mixed with a hefty dose of war-related uncertainty, is forcing sellers to lower their price expectations and, in some cases, accept offers considerably below asking price.”
Flat and maisonette values slide
The average price of a flat or maisonette dipped notably by 5.3% to £188,643 in March.
Terraced homes saw a marginal annual increase of 0.5% to £228,340.
The average value of a semi-detached home rose 1.8% to £274,251 and detached homes increased 1.9% to £438,263.
The typical price of an existing resold property rose 1.2% year-on-year to £264,175 but fell 0.2% over the month. Meanwhile, new-build property prices rose 0.1% over the year to £343,580 but recorded a 0.5% monthly decline.
On average, first-time buyers paid 0.7% less for homes than they did last year, putting down £226,247. Compared to the previous month, this was a 0.3% fall.
Former owner-occupiers paid 0.6% more than they did last year, at £329,454. On a monthly basis, this was a 0.5% drop.
