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Average UK property prices edged up slightly by 0.3% during the month of March, according to property website Hometrack.

It calculates that the annual average growth figure now stands at 1.3%, and believes that the market is finally returning to normal.

Richard Donnell, Hometrack’s director of research said:

“The recovery in market conditions over the last 12 months has been built on a scarcity of housing for sale.

“During the whole of 2009 the stock of housing for sale increased by just 7% - this in contrast to the first 2 months of 2010 when the supply of homes for sale increased by 10.2%.

“Indeed over March the growth in the number of homes coming to the market exceeded new buyers registering with agents.”

Hometrack recons that fewer buyers registered with estate agents in March than in February, and yet there were more sales agreed this month - up 13% on February.