This continues the general slowdown in the annual growth rate seen since mid-2016. The average UK house price now stands at £216,000 - £9,000 higher than in March 2016 and £1,000 lower than February 2017.
The main contribution to the increase in UK house prices came from England, where house prices increased by 4.4% over the year to March 2017. In Scotland, the average price increased by just 0.7% over the year to stand at £137,000.
The East of England and the East Midlands both showed the highest annual growth, with prices increasing by 6.7% in the year to March 2017. This was followed by the West Midlands at 6.5%. The lowest annual growth was in the North East, where prices decreased by 0.4% over the year, followed by London at 1.5%.
On a seasonally adjusted basis, the North West showed the highest monthly growth with prices increasing by 0.7% over the month to March 2017. The lowest seasonally adjusted monthly growth was in the North East where prices decreased by 2.2% over the month.
Mark Harris, chief executive of SPF Private Clients, commented: "The housing market in March was bound to be quieter compared with a year ago because back then investors and second homeowners were rushing to purchase in order to beat the stamp duty hike at the beginning of April. This year there is no such impetus to focus the mind, with the market ticking along as usual.
"The impending general election is having little impact on the market, apart from the upper end where there may be people just waiting for the sake of three or four weeks before making a decision."
