House prices increased by 0.4% month-on-month in March as ultra-low mortgage rates and cheaper stamp duty costs helped to support demand from home buyers, Halifax reported.

The monthly increase in property values took the average UK house price to £192,970 and reversed a month-on-month price dip of 0.4% seen in February.

Property values were 8.1% higher than they were a year ago in March, continuing a slowdown in the annual rate of growth.

In February, house prices were 8.3% higher than they were a year earlier and last summer the annual rate of property price growth was as high as 10.2%.

Martin Ellis, a housing economist at Halifax, said that on a quarterly basis, house prices in the three months to March were 2.6% higher than in the previous three months.

The quarterly measure rate of house price growth, which often gives a good indication of the underlying direction of house prices, increased for the third month in a row in March.

Mr Ellis said: “The recent return to real earnings growth for the first time in several years, very low mortgage rates and last December’s stamp duty changes are supporting housing demand.

“The rising level of house prices in relation to earnings should, however, curb house price growth and activity. The annual rate of house price growth, which has continued to ease in the first quarter of 2015, is forecast to end the year at 3-5%.”