House prices recorded their weakest yearly performance since the depths of recession in 2009 in the year to March, new figures from Knight Frank show.

The real estate firm said its Global House Price Index recorded a rise of only 0.9 per cent in the 12 months ended 31 March.

The opening quarter of the year, when house prices were static, was the first time growth had slipped below 1 per cent since the final quarter of 2009, Knight Frank said. House prices fell in more than half of the countries in the index in the first quarter this year.

The firm attributed the dire results to the ongoing sovereign debt problems in Europe. “The next three to six months will be critical for global housing markets,” it said. “If discontent in Spain and Greece can be appeased and France and Germany agree on a firm path of growth-promoting policies, the crisis could ease.  Either way, it will be 2013 and possibly the latter half – before the index starts to strengthen.”

Spain and Greece saw house price slumps of 9.8 per cent and 7.3 per cent, respectively, while prices rose by 9.8 per cent in Germany and by 3.9 per cent in France.

The strongest annual performance occurred in Brazil, where house prices hiked by nearly a quarter, while Ireland suffered the most with a 16.3 per cent fall.