Property price inflation was down to 0.4 per cent this month, according to new research.
A study by Nationwide has revealed this recent slowdown in house price growth, but said that the market was still "on track" to meet its predicted five to eight per cent increase.
Between March 2006 and March 2007, house prices increased by 9.3 per cent, representing a fall in house price inflation from the previous month, which saw an annual property value growth of 10.2 per cent.
Commenting on the figures, Nationwide's chief economist Fionnuala Earley said: "While the annual rate of house price inflation has yo-yoed over the last few months, the underlying trend is clearly softening as interest rate rises take effect.
"The three-monthly growth rate of 2.1 per cent is at its lowest since August. Leading indicators of house price inflation also suggest that the underlying trend will continue to slow this year."
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