The LSL Acadametrics index revealed that positive house price growth in London and the South East has kept average national figures marginally above zero.
In addition, at a local level, 68 out of 108 counties districts recorded a drop in annual house prices over the last three months, compared to 52 recorded for the three months to February.
Nevertheless, average figures for England and Wales showed that annual house price growth was flat in March, after a 0.5% drop in February, as monthly average prices fell a modest 0.1% to £222,146, slightly reversing the 0.3% rise the previous month.
The apparently flat growth also masked that real house price values are under significant pressure as RPI rose to 5.5%.
LSL Acadametrics said that current annual trends are likely to continue for another month, but negative growth may come thereafter.
Yet, while some districts suffered, areas including Gloucestershire, Oxfordshire and Darlington have experienced record levels of price growth, with Gloucestershire seeing the highest increase of 7.7%.
Of the five areas with the largest price falls, three were in Wales. The LSL Acadametrics index showed that 17 of the 22 districts in Wales have falling house prices, second only to Yorkshire and Humberside for negative annual house price growth.
Meanwhile, transactions increased by 6% in March, stimulated by a rush from buyers of high-value properties looking to beat the Stamp Duty increase for homes over £1m.
David Brown, commercial director of LSL Property Services, comments: “Although prices are static, this doesn’t mean real property values are staying still. With RPI currently running at 5.5%, property owners are seeing value being chipped away at an alarming rate. This is great news for buyers who are able to secure finance.
“The static national figures conceal a much more dynamic picture in the regions, where prices are moving sharply in both directions. London and the South East continue to power forward, while the North of England and Wales have seen significant price falls.
“Lenders are especially worried about the effect government spending cuts will have on unemployment in areas where a large proportion of workers are employed by the state, and this is holding back demand. This disparity may be reduced to a small extent by the government’s FirstBuy scheme, but the scale of regional price variations shows it will take much more than the promised £250m to invigorate regions where the biggest falls are happening.”
