House prices fell by 4.3% year-on-year and 2.7% month-on-month in March 2017, according to haart estate agents.
After the reduction house prices averaged at £222,884.
First-time buyer house prices also fell by 4.8% to £168,986 in March year-on-year.
First-time buyer registrations rose by 20% in March and 28% in London, signalling continued activity at the bottom end of the housing market.
Paul Smith, chief executive of haart, said: “The pressure on first-time buyers was eased this month, as record price rises began to stabilise across the country.
“However despite this surge in activity in March, pulling together the money for both a deposit and stamp duty is still the biggest challenge for aspiring homeowners.
“All political parties should grasp the upcoming election as an opportunity to create a housing market that is fairer for all, encourage homeownership, as well as incentivise housebuilders to build family homes to free up sufficient stock.
“At the moment first-time buyers are seizing the opportunity to get on ladder wherever they can, because the government has apparently run out of ideas.”
Haart also found that the number of people viewing properties is increasing but transactions are falling.
Indeed, in March there were 16.2% more buyer viewings but 3.9% fewer sales compared to February.