The average house price jumped by £3,000 in February on the previous month, according to Rightmove.
Experts have put the increase down to mortgage rates remaining relatively stable after a surge caused uncertainties at the start of 2023.
The news comes despite recent confirmations that the UK has slipped into recession in the last half of 2023, which can cause house prices to fall.
The number of sales secured in the first weeks of the year has been 16 per cent higher than in the same period last year.
Rightmove experts say February is a standout month for sellers
PA
The UK’s largest property website, Rightmove, previously claimed that February stands out as an optimal month for selling homes.
This means that first-time sellers who put their property on the market for a fair price could have great chances of securing a buyer.
Properties that are overpriced are being rejected by price-sensitive buyers, however, with analyses indicating that fair pricing is much more likely to see a property sell.
Data released by the website indicates that asking prices for the average new sellers have increased by 0.9 per cent in February, translating to a £3,091 increase in the average asking price, to £362,839.
The increase is in line with the seasonal rise that typically occurs in February.
Tim Bannister, Rightmove’s director of property science, said: “Mortgage rates have fallen considerably from their peak and are now remaining broadly stable after the uncertainty of late 2022, and 2023.
“Momentum to move in 2024 is continuing to build, but prospective sellers mustn’t get carried away.
“Buyers now have more choice of property for sale and many are still very price-sensitive with mortgage rates remaining elevated.
The average house price increased by 0.9 per cent through February
PA
“Sellers who are serious about moving this year would be well-advised to ride this wave of increased buyer confidence with an attractive asking price before any pre-election jitters or unexpected events dampen the momentum.”
It comes as Britain’s housing market saw the number of properties climb by a staggering 34 per cent compared to the same time last year.
The release of Rightmove’s report comes as the rental index for Hamptoms claims that average rents on newly let properties across Britain rose by 8.3 per cent annually in January.
Hamptons offered a list of the average monthly rents in January and the annual increase in percentage and cash terms:
- London, £2,315, 8.1%, £174
- East of England, £1,292, 13.1%, £149
- South East, £1,407, 7.7%, £101
- South West, £1,156, 5.3%, £59
- Midlands, £950, 10.0%, £86
- North of England, £885, 8.2%, £67
- Wales, £891, 4.5%, £34
- Scotland, £916, 9.9%, £82.
