Overheating or not? UK property prices saw their biggest fall in nearly two years in March.

Figures from the Halifax mortgage lender showed prices were down by 1.1 percent from the previous month.

However, year-on-year the average cost of a home was 8.7 percent higher between January and March compared with the same period last year.

That matched recent similar data from another big lender, Nationwide which said price rises had “moderated” in the last couple of months.

This comes amid concerns about a fresh bubble developing in the UK housing market.

The sector has been buoyed by record low interest rates and government schemes to help people without a large deposit.

Rising property prices have been a key engine of Britain’s surprisingly fast recovery.

Bank of England officials have said they are vigilant about momentum in the market.

Prices in London continue to soar, and the average is now double that in the rest of Britain.