House prices have fallen 2.2 per cent month on month, the Nationwide house price index has revealed.
The building society reported annual house price growth has slowed to 2.2 per cent in February, from 3.2 per cent in January.
The average UK house price is now just over £210,000.
The fall follows unexpectedly positive figures in January.
Robert Gardner, Nationwide's chief economist, said: "After picking up unexpectedly in January, UK house price growth fell back in February, to 2.2 per cent from 3.2 per cent the previous month.
"House prices fell by 0.3 per cent over the month, after taking account of seasonal factors.
"Month-to-month changes can be volatile, but the slowdown is consistent with signs of softening in the household sector in recent months.
"Retail sales were relatively soft over the Christmas period and at the start of the new year, as were key measures of consumer confidence, as the squeeze on household incomes continued to take its toll."
He added that he expects house prices to be broadly flat, with a marginal gain of around 1 per cent over the course of 2018.
Jeremy Leaf, north London estate agent and a former Rics residential chairman, said the figures "may cause concern".
He said: "At this time of the year we would have expected an increase, not a fall, in house price growth although of course these figures are in contrast to the previous month’s findings.
"However, it goes to show the limitations of a national snapshot of the market. While Nationwide reports a lack of supply, on the ground, we are finding more balance between supply and demand in our part of London as buyers, spoilt for more choice, hesitate before making commitments and identifying whether they are dealing with serious sellers."
Jonathan Samuels, chief executive of property lender Octane Capital, said: "With the ongoing financial squeeze on households, you sense the house price slowdown has now begun in earnest.
"High living costs, low wage growth, potential rate rises and a lethargic economy in the shadow of Brexit: for consumers, the bad news is in stereo mode.
"While weak supply and very low borrowing costs will prevent a collapse in prices, it's hard to see 2018 delivering anything other than very low single digit growth. February could go down as the month the big freeze on prices took hold.
"It's a freeze that may last until inflation comes down and there is significantly more clarity on the direction of the economy.For many people, the reasons to buy are being firmly outweighed by the reasons not to buy."
