Scotland experienced a decrease in the rate of house price inflation in March according to newly released official data.

Statistics from government department Communities and Local Government (CLG) reveal that the annual inflation rate in Scotland fell from 16.6 per cent to 14.8 per cent.

The country was joined by Wales and most regions of England in demonstrating a decreases, in news likely to be welcomed by the first time buyer market or others investing in new homes.

Northern Ireland was the only home country where the inflation rate rose, from 48.5 per cent to 50.1 per cent.

First time buyer house price inflation also fell, with the properties bought by such investors decreasing from 12.2 per cent to 10.8 per cent.

However, Howard Archer, chief economist at the Global Insight consultancy, said: "An ongoing shortage of properties in many areas means that pricing power is currently still significantly in favour of the vendor.

"This seems likely to limit the slowdown in house prices over the coming months."

The findings of CLG are in line with those of both the Halifax and Nationwide, whose house price indices both identified a similar slowing in the market in recent weeks.