House asking prices 'at six-year high' as London soars

New sellers asking over £16,000 more for their home than those who came to market a year ago amid fears of new housing bubble

The average asking price of a home in the capital has jumped over 10 per cent to hit £541,313 in January.

London saw a 11.2 per cent year-on-year increase in average asking prices, while asking prices across the country saw their biggest year on year jump since 2007 in February, according to Rightmove.

The property website said the average asking price across England and Wales has hit £251,964, 6.9 per cent higher than a year ago, thanks to demand from would-be buyers.

The increase marks the highest annual rate of growth since November 2007 and means that new sellers are now asking over £16,000 more for their home than those who came to market a year ago.

On a month-on-month basis, asking prices were ramped up by 3.3 per cent across the country, although Rightmove said that signs that more sellers are starting to coming to market could have a calming effect on prices in some areas the coming months.

Rightmove said there was a "welcome jump" in the number of properties coming to market this month. The number of new properties listed on the website has averaged 27,768 over the last four weeks, marking an 18% increase on the same period a year ago.

But there are also signs that this extra supply is already being soaked up by buyer demand, indicating that sales numbers could be "considerably higher in 2014 than 2013", the website said.

It said there has been a slight fall in the average number of properties for sale per estate agency branch over the month, from 58 homes to 57.

If the rise in properties coming on the market continues and starts to run ahead of buyer demand, this will ease the upwards pressure on house prices by widening the number of potential homes for people to choose from.

But Rightmove said it will take more than one month of improvements in new listings to bring the market back into balance and some "hotspots" have seen no uplift in new property listings at all.

Miles Shipside, director of Rightmove, said: "The housing market can only help to support a wider economic recovery if there is a sustained boost to property supply and not just buyer demand, and there is some early evidence that this is happening.

"However, supply and demand imbalances remain and are getting worse in many markets, as a result of years of under-provision of additional housing stock, especially in the areas where the local economy and employment are strong."

The Government's flagship Help to Buy scheme has helped to boost demand in the housing market by improving the availability of mortgage deals for creditworthy buyers with deposits as low as 5 per cent.

But critics of the scheme argue that it has also helped to fuel an imbalance between demand and supply in the housing market, which is putting an upward pressure on house prices and encouraging people to stretch their borrowing.

Last week, the Money Advice Service (MAS), a body set up by Government, released research which found that one in five people who have got on the property ladder in the last two years now regrets not buying somewhere cheaper.

Read more: Carney: House prices out of Bank's control as foreign cash buyers dominate London market
Property news roundup: The most expensive terraced house in Britain
Start your day with The Independent, sign up for daily news emails
News
i100
Arts and Entertainment
Billie Piper as Brona in Penny Dreadful
tvReview: It’s business as usual in Victorian London. Let’s hope that changes as we get further into the new series spoiler alert
Life and Style
A nurse tends to a recovering patient on a general ward at The Queen Elizabeth Hospital in Birmingham
health
News
science
Arts and Entertainment
No Offence
tvReview: No Offence has characters who are larger than life and yet somehow completely true to life at the same time spoiler alert
News
Chuck Norris pictured in 1996
people
ebooks
ebooksA celebration of British elections
Arts and Entertainment
Sarah Lucas, I SCREAM DADDIO, Installation View, British Pavilion 2015
artWhy Sarah Lucas is the perfect choice to represent British art at the Venice Biennale
News
A voter placing a ballot paper in the box at a polling station
i100
News
people
Arts and Entertainment
The Queen (Kristin Scott Thomas) in The Audience
theatreReview: Stephen Daldry's direction is crisp in perfectly-timed revival
Sport
football
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: Trainee Recruitment Consultant - Swiss Banking and Finance

£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...

Ashdown Group: Marketing Executive - 6 month FTC - Central London

£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...

Ashdown Group: Junior Project Manager (website, web application) - Agile

£215 per day: Ashdown Group: Junior Project Manager (website, web application ...

Guru Careers: Software Engineer / Software Developer

£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...

Day In a Page

General Election 2015: Ed Miliband's unlikely journey from hapless geek to heart-throb

Miliband's unlikely journey from hapless geek to heart-throb

He was meant to be Labour's biggest handicap - but has become almost an asset
General Election 2015: A guide to the smaller parties, from the the National Health Action Party to the Church of the Militant Elvis Party

On the margins

From Militant Elvis to Women's Equality: a guide to the underdogs standing in the election
Amr Darrag: Ex-Muslim Brotherhood minister in exile still believes Egypt's military regime can be replaced with 'moderate' Islamic rule

'This is the battle of young Egypt for the future of our country'

Ex-Muslim Brotherhood minister Amr Darrag still believes the opposition can rid Egypt of its military regime and replace it with 'moderate' Islamic rule, he tells Robert Fisk
Why patients must rely less on doctors: Improving our own health is the 'blockbuster drug of the century'

Why patients must rely less on doctors

Improving our own health is the 'blockbuster drug of the century'
Sarah Lucas is the perfect artist to represent Britain at the Venice Biennale

Flesh in Venice

Sarah Lucas has filled the British pavilion at the Venice Biennale with slinky cats and casts of her female friends' private parts. It makes you proud to be a woman, says Karen Wright
11 best anti-ageing day creams

11 best anti-ageing day creams

Slow down the ageing process with one of these high-performance, hardworking anti-agers
Juventus 2 Real Madrid 1: Five things we learnt, including Iker Casillas is past it and Carlos Tevez remains effective

Juventus vs Real Madrid

Five things we learnt from the Italian's Champions League first leg win over the Spanish giants
Ashes 2015: Test series looks a lost cause for England... whoever takes over as ECB director of cricket

Ashes series looks a lost cause for England...

Whoever takes over as ECB director of cricket, says Stephen Brenkley
Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power