However, property portal says there are signs that supply logjam will ease

Asking prices for homes have risen by 0.3% in the last month according to the latest data from property portal Rightmove, putting the annual price rise up to 7.6%.

The rise, which follows a fall of 0.7% in December, puts the average asking price of a home at £341k, and comes as the firm reports a continuing lack of properties on the market, which is supporting prices.

For sale sign

However, it said it expects this to start to shift, with the first week of 2022 being the busiest on record for people requesting valuations from estate agents.

Rightmove also said the number of buyers looking for homes is 15% higher than the same period last year. It added that price rises had been fastest over the last year in the East Midlands, South west and the South east of England – all of which had experienced growth in value of more than 10%.

Tim Bannister, director of property data at Rightmove said the figures suggested that the trends which defined the market in 2021 have carried over into this year. However, he added: “We are seeing early signs of a better balanced market in 2022. The number of requests from would-be sellers to agents to value their home has continued to increase from the end of last year and was at one of its highest points ever on the first working day of this year.

“While this potential new supply will take a little while to appear on the market, it’s an encouraging sign of more choice for buyers in the coming months.”

The rise comes after both Nationwide and the Halifax reported strong growth in prices in December, with Nationwide putting annual growth in 2021 at just over 10%.

Marc von Grundherr, director of estate agent Benham and Reeves, said: “There have been no signs of a sluggish start to the year for the property market and not only are we seeing a very strong level of buyer activity, but we’ve also been inundated with requests from potential sellers keen to make the most of these buoyant market conditions.”