Residential property values drop 1.7pc

The drop means that average house prices in Britain are now 2.8% lower than one year ago.

Scotland performed best with average property values falling only 1.4% to £162,777 over the quarter, still up 4.1% over the past 12 months.

In England average values dropped 1.7% since the start of the year to £222,849 and are down 3.2% on a year ago, while average house prices in Wales fell by 1.5% over the quarter to £149,629 and remain 3.3% lower than a year ago.

Over the past 12 months, all but six cities in Britain have seen property prices fall. Edinburgh performed best, up 5.2% over the last year, whilst Huddersfield has performed the worst with average home values down 6.4% over the same period.

London has not been immune to the recent drops with property prices in the capital having fallen 2.1% over the past year according to Zoopla.

Nicholas Leeming, business development director at Zoopla, said: “It has not been the best start to the year in terms of house prices however market activity has begun to show some positive signs of life. For some the drop in prices is an incentive to act as more properties become affordable.”