House prices across the UK rose 0.1% on February in March, but dropped 2.9% on February last year.
The figures, which come from Halifax, show that the average property price is now £162,912, which was £215 more expensive than the month before, in their latest survey.
House prices are down 0.6% for the quarter compared to the last three months of last year, and the fourth consecutive quarter to see a fall in prices.
Martin Ellis from Halifax said, “The overall decrease in prices in the first quarter of 2011 compared with the previous quarter was a little lower than the quarterly falls recorded in the third and fourth quarters of 2010.”
“The recent increase in employment, particularly those in full-time jobs, may have been an important factor supporting the market.”
Halifax predict that house prices will fall 2% in 2011, and have blamed uncertainty in the economy as the main reason people are not moving house.
Nationwide, who also carry out surveys found that the last quarter’s house prices actually rose 0.6% showing a slight difference from the Halifax results. The Land Registry’s figure, widely seen as the most accurate, will be released in May.