The Office for National Statistics (ONS) has reported that house prices in February fell by 0.6% on January’s prices.
There has been an annual price rise of 1.1%, which makes the average property in the UK valued at £230,332.
In England, the February data shows on average, house prices have fallen by 0.6% since January 2020.
The annual price rise of 0.8% takes the average property value to £246,341.
The South West experienced the greatest monthly price rise, up by 0.5%, while the East Midlands saw the most significant monthly price fall, down by 1.0%.
Meanwhile, London experienced the greatest annual price rise, up by 2.3% and the East of England saw the lowest annual price growth, down by 1.0%.
The ONS said the UK House Price Index will continue to be released on a monthly basis and it will review the ongoing impact of the Covid-19 pandemic on the amount of transactions available.
It added: “The index will continue to reflect the property market, although we are anticipating lower volumes in transactions starting from next month’s release following the implementation of the measures taken by the government.”
Lucy Pendleton from estate agents James Pendleton, said: “Get ready for the sale of the century. Buyers and sellers have never been funnelled into a bottleneck like this in history and it’s too early to write this year’s market off as a dud. Covid-19 has created a build up of pressure that could make the Boris Bounce look like a pea shooter.
“This property market freeze is like nothing experienced by anyone alive but we’re still seeing tremendous numbers of people, who can’t wait to go house hunting, registering for viewings once this is over. There was talk earlier this week of a 38% collapse in transactions this year. That could be premature. There are several reasons for this.
“First, what’s happening has nothing to do with affordability or prices. Secondly, many people have waited patiently for Brexit to pass only to have their moving plans blindsided by a global pandemic. It’s been a double whammy and some households have now been waiting years to move. We’re expecting buyers and sellers to be stampeding back to the table at the earliest opportunity.
“The property industry is also not like the travel industry. Whereas holidaymakers may miss trips and not take an extra holiday later this year to make up for it, buyers and sellers commit in their minds to making one transaction when they can. This all makes an early stampede followed by a very busy summer during the normally quiet months of July and August much more likely.
“When the lockdown ends, prices are unlikely to be much changed on early February’s valuations. We already plan to use open house viewings to cope with demand for consultants’ time and sealed bids could be commonplace.”