The price of property coming to market rose by 2.3% this month (+£7,785) to a record of £348,804, the biggest monthly jump in pounds recorded by Rightmove in more than twenty years.
Prices are now 9.5% higher than a year ago, the highest annual rate of growth since September 2014.
There are signs that both buyers and sellers fear missing out in the current competitive market as more potential buyers are sending enquiries to agents, with the number 16% higher than this time last year.
New property listings are up 11% compared to the same period last year, suggesting more sellers are coming to market before looking for a property to purchase, to avoid missing out on their next home.
The number of people requesting a home valuation from an estate agent was up 11% in January compared to last year,
London records biggest annual jump in number of buyers sending enquiries of any region, and highest annual rate of price growth since 2016, as the end of pandemic restrictions and a return to the office fuel renewed demand in the capital.
Tim Bannister, Rightmove’s director of property data, commented: “The data suggests that people are by no means done with their pandemic-driven moves.
“Such a significant societal event means that even two years on from the start of the pandemic, people are continuing to re-consider their priorities and where they want to live.
“As the final legal restrictions look to be ending soon, and more businesses are encouraging a return to the office for at least part of the week, we now have a group of movers who are looking to return closer to major cities, or at least within comfortable commuting distance of their workplaces.
“High demand and a shortage of available stock are supporting a rise in prices and a new record average asking price this month.
“The rising cost of living is undoubtedly affecting many people’s finances, especially those trying to save up enough for a deposit to get on the ladder or to trade up.
“However, despite rising costs and rising interest rates, the data right now shows demand rising across the whole of Great Britain, with many people determined to move as we head into the spring home-moving season.”
James Forrester, managing director of Birmingham estate agent Barrows and Forrester, said: “There’s certainly been no let up in the sheer volume of buyers swamping the market and we continue to see high numbers fighting it out for a very limited level of stock, the result of which is an inevitable boost to property values.
“However, we’re also seeing sellers preempt this high demand and enter the market at a far higher price point to take advantage of this buyer desperation and this has pushed asking prices up at their highest monthly rate in over two decades.”
Marc von Grundherr, director of London estate agent Benham and Reeves, added: “There have been numerous signs that the London market is starting to turn in recent months and it is very likely we’ve now seen the back of the capital’s pandemic house price slump.
“The start of 2022 has been exceptionally busy and buyer enquiries have shot through the roof, as London home buyers try to get in quick and secure a purchase before house prices start to accelerate.
“It’s only a matter of time before this initial buyer demand and the sharp increase in asking prices starts to filter through to completed sales, at which point we expect home sellers across the London market will further up their asking prices as a result of this growing market confidence.”
Geoff Garrett, director of Henry Dannell, concluded: “It remains very much a sellers market and the continued increase in asking price expectations demonstrates this, as buyers are further stretched in order to secure a home.
“However, with high chances of at least two further interest rate increases over the course of this year, those purchasing with the help of a tracker or variable rate mortgage will notice their monthly costs climb significantly.
“While it’s a competitive market, it’s strongly advisable to avoid over stretching yourself financially to secure a purchase, as this could well lead to financial instability further down the line.”
