Average price tag on a home rockets by nearly £8k in a month

The average price tag on a home across Britain has rocketed by nearly £8,000 in the space of a month.

The £7,785 jump in 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.

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The new record means that average asking prices have now risen by nearly £40,000 in the two years since the coronavirus pandemic started, compared to just over £9,000 in the previous two years.

The sharp increase comes at a time when households are being squeezed by surging living costs, including for energy, food and fuel.

The average asking price for a home is 9.5% higher than a year ago, marking the highest annual rate of growth since September 2014, Rightmove said.

Rightmove said February's price growth is being driven by the "second stepper" sector - comprised 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% higher than at this time in 2021, Rightmove said.

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 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."

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.

Mr Bannister added: "It seems that the fast-moving market has really hit home for sellers this month, with a number of those who are also buyers putting themselves in the best position to secure their dream home by becoming a 'power buyer' and getting their own home on the market first.

"This in turn is driving a rise in new listings compared to last year, giving the existing pool of buyers some fresh choice.

"A fear of missing out on one's dream home is really driving market behaviour at the moment, as movers look to do all that they can to avoid the disappointment of being too slow to secure their ideal property. We're seeing buyers sending more inquiries for available homes than usual, and doing everything that they can to put themselves at the top of the list."