THE average price of a home across Britain has rocketed by £8,000 in just one month – the biggest monthly jump in more than 20 years.
The record rise of £7,785 in February means the average asking price stands at £348,804.
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Average property asking prices have soared by nearly £40,000 since the pandemic began two years ago.
That’s compared to an increase of £9,000 in the previous two years, according to the research by Rightmove.
The latest misery for first-time buyers comes as Brits are being squeezed by a sharp rise in living costs, including rising energy, food and tax bills.
Sellers are asking for prices 9.5% higher than a year ago, which is the highest annual rate of growth since September 2014, the property platform said.
The growth surge is being driven by “second steppers” – buyers who need more space and are looking to move on from their first homes.
London has seen a particularly big jump in home buyer inquiries as workers have started to return to the office.
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Across the country, buyer demand is 16% higher than this time last year.
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.
That means potential sellers have the best chance of selling their home quickly for a good price next month.
Mr Bannister added: “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.”
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