Low household confidence led UK house prices to fall by 1.4% in April compared with March, according to the Halifax.
The lender, now part of Lloyds Banking Group, said the latest figures showed that property values were continuing a trend of "modest decline".
Prices fell by 3.7% compared with a year ago, with the average home now costing £160,395.
In the three months to April, prices were 1.2% down on the previous quarter.