" Transactions are falling while listings have increased but not making up for an historic shortfall whereas demand is relatively flat."
The annual growth rate has slowed since mid-2016 and has remained under 5%, with the exception of October 2017, throughout 2017 and into 2018.
On a seasonally adjusted basis, average house prices in the UK increased by 0.7% between March 2018 and April 2018, compared with an increase of 0.5% in average prices during the same period a year earlier.
The main contribution to the increase in UK house prices came from England, where house prices increased by 3.7% over the year to April 2018, with the average price in England now £244,000.
Wales saw house prices increase by 4.4% over the last 12 months to stand at £156,000. In Scotland, the average price increased by 5.6% over the year to reach £149,000. The average price in Northern Ireland currently stands at £130,000, an increase of 4.2% over the year to Q1 2018.
The South West showed the highest annual growth, with prices increasing by 6.1% in the year to April 2018, followed by the West Midlands with a rise of 5.9%.
The lowest annual growth was in London, where prices increased by 1.0% over the year, followed by the North West, where prices increased by 2.4% in the year to April 2018.
Jeremy Leaf, north London estate agent and former RICS residential chairman, commented: "These figures are interesting, albeit a little dated, in that they show house prices are continuing their more modest upward trend with little sign of correction any time soon.
"Behind the numbers bears out what we’re finding on the High Street – transactions are falling while listings have increased but not making up for an historic shortfall whereas demand is relatively flat.
"As a result, the increase in house prices is more to do with the lack of supply of appropriate property in places where people most want to live rather than a marked improvement in confidence.
"Looking forward, we do not expect major change but do hope more sellers appreciate the difference between vanity and sanity when it comes to recognising these new market conditions."
