House price growth hit a seven-year low in February, Land Registry figures show.
The latest Land Registry House Price Index shows property values grew 0.6% annually to £226,234, the lowest rate since September 2012 when prices were up 0.4%.
Prices also fell on a monthly basis in February by 0.8%.
Wales posted the strongest price growth during the month, up 4.1% annually to £159,559, while London saw the largest fall with a 3.8% decline in values to £459,800.
Average prices also fell for the first time in the south-east of England since October 2011 by 1.8% to £315,700.
The figures also show provisional estimates for sales volumes as of December – based on 85% of final registered transactions for the month – that suggest transactions fell by 2% in England, 8.2% in Scotland and 5.1% in Wales on an annual basis and increased by 4.3% in Northern Ireland.
Commenting on the data, Lucy Pendleton, founder director of independent estate agents James Pendleton, said: “The undeniable correction now at hand in London is the adjustment many have been waiting for.
“Falling prices in the capital are a sign that vendors have finally got the message. Sellers have needed a firm hand to guide them to more realistic prices recently.
“This is going to stoke demand and transaction volumes, which is what the market needs.”