House prices see biggest monthly rise for 20 years as average value leaps by £8,000, data shows
- The average asking price for houses in Britain now stands at a record £348,804
- Property expert Rightmove recorded jump in average price of £7,785 in February
- Firm puts surge down to first-time buyers looking to move on to a second home
The average price tag on a home has rocketed by nearly £8,000 in the space of a month.
The £7,785 jump this February is the biggest month-on-month increase in cash terms recorded by Rightmove in more than 20 years of its reporting.
It means the average asking price across Britain now stands at a record £348,804 – a rise of nearly £40,000 in the two years since the pandemic started, compared with just over £9,000 in the previous two years.
The average asking price for a home is 9.5 per cent higher than a year ago, marking the highest annual rate of growth since September 2014, Rightmove said.
The average price tag on a home has rocketed by nearly £8,000 in the space of a month
Rightmove said February’s price growth is being driven by the ‘second stepper’ sector – a category of buyers who may find themselves in need of more space and are now ready to move on from their first homes.
As some workers are being encouraged to return to the office, London has seen a particularly big jump in home buyer inquiries, Rightmove said.
Buyer demand generally is 16 per cent higher than at this time in 2021. Scotland saw the biggest monthly increase in February, with a 7.5 per cent price rise to an average price of £174,567.
The regions with the lowest increase were the East Midlands and South West, both of which saw prices rise by 0.4 per cent.
Tim Bannister, Rightmove’s director of property data, said: ‘We now have a group of movers who are looking to return closer to major cities, or at least within comfortable commuting distance.
‘High demand and a shortage of available stock are supporting a rise in prices and a new record average asking price this month.
Buyer demand generally is 16 per cent higher than at this time in 2021, Rightmove data shows
‘The rising cost of living is affecting people’s finances, especially those trying to save up for a deposit to get on the ladder or to trade up.
‘However, demand is rising across the whole of Great Britain, with many people determined to move as we head into the spring home-moving season.’
Recent research from Rightmove found competition between buyers is generally at its strongest in March, providing an opportunity for would-be sellers to have the best chance of selling their home quickly for a good price.