UK house prices fell further in March, according to the latest Halifax House Price Index, although over the full first quarter of 2009 prices fell at a slower pace than they had last year.

The Index in March showed a drop of 1.9 per cent and is in contrast with the picture painted by the latest Nationwide House Price Index on Thursday which showed prices rising last month. The two lenders’ indices, closely watched by economists because of their long history, have largely mirrored each other in recording house price moves in recent years. However, they have occasionally diverged, as they did in January when the Halifax Index showed prices rising while Nationwide showed them falling.