The average home price in March was £180,264 – 9.5 per cent higher than the same time last year, but still 3 per cent below the 2007 house price peak.

Robert Gardner, Nationwide’s chief economist, said there was little doubt that the recovery in the housing market was now “firmly established”, with activity levels picking up and house prices recording their fifteenth successive monthly increase in March.

However, Nationwide said house price growth was showing “some tentative signs of moderation”.

The monthly pace of price growth slowed to 0.4 per cent in March down from 0.7 per cent in February and 0.8 per cent in January.

Meanwhile, the gap between house prices in London and the rest of the UK has reached a record level. 

London house prices were up 18 per cent year-on-year in the first quarter of this year, taking the price of a typical home in the capital to £362,699 – more than twice the level prevailing in the rest of the UK when London is excluded.

“The gap between house prices in London and the rest of the UK is the widest it’s ever been, both in cash and percentage terms,” Gardner said.

However, all UK regions saw annual price rises during the first quarter.