Weak household confidence led UK house prices to fall by 1.4% in April compared with March, the Halifax has said.
The lender, now part of Lloyds Banking Group, said the latest figures showed that property values were continuing a trend of “modest decline”.
Prices fell by 3.7% compared with a year ago, with the average home now costing £160,395.
In the three months to April, prices were 1.2% down on the previous quarter.
“Weak confidence amongst households, partly due to uncertainty over the economic outlook, is constraining housing demand and resulting in some downward movement in prices,” said Martin Ellis, Halifax housing economist.
“The latest figures show that the underlying trend in house prices continues to be one of modest decline.”
However, he said low mortgage rates and an increase in the number of people with jobs were likely to curb the pace of house price decline.
“There are signs that house sales are stabilising albeit at a level lower than the historical average,” he added.
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House prices ‘fell 1.4% in April’