HOUSE prices in the UK fell by one per cent this month and are almost one per cent lower than a year ago says Swindon-based Nationwide Building Society.

The price of a typical home is now £163,327.

Robert Gardner, Nationwide’s chief economist, said: “The price of a typical UK home fell by one per cent in March, pushing the year-on-year rate of house price growth into negative territory for the first time in six months.

“A slowdown was to be expected, given the imminent expiry of the stamp duty holiday, which had provided a temporary boost to house prices in early 2012 as buyers brought forward purchases that would otherwise have taken place later.

“This dampening effect on market activity and prices may fade over the the summer, especially if the wider economic outlook begins to improve and other policy measures, such as the NewBuy scheme are successful in supporting buyer demand.

“However, the challenging economic backdrop is likely to continue to act as a drag, with house prices moving sideways or modestly lower in next 12 months.”