House prices fell by -0.6% over March – the lowest monthly decline for 10 months, Hometrack has said.

Over the last 12 months prices have fallen by 10.3% and continuing weak demand is set to keep prices under downward pressure for some time to come.

Two key lead indicators from the Hometrack survey posted clear changes in direction during March. The average time on the market fell to 11.3 weeks from 12 weeks in February and the proportion of the asking price being achieved rose for the first time in two years from a low of 88.3% to 88.8%.

This suggests a continued slow move to more realistic pricing. The number of sales agreed also increased (by 19%) as did the number of new buyer registrations (8.5%).

Richard Donnell, Director Research, Hometrack said : “Following a year of declining demand and market activity, this modest pick up is largely seasonal supported by pent up demand which is feeding into the market. But with the expectation of continued increases in unemployment and weak economic growth, together with restricted availability of mortgages, it seems doubtful whether the increase in activity and sales will continue to gather momentum in the coming months.”