Asking prices shoot up 3.2%

The average asking price for a UK property rose by 3.2% in the four weeks to February 6 to £229,398. For London the figure was £427,987.

According to data released by the UK’s largest property website, Rightmove, a dearth of properties on estate agents’ books helped to bring about the largest monthly boom in the price of property in England and Wales since April 2007.

The average asking price has risen by 6.1% in the last 12 months. In the capital the annual growth rate was 10.1%. Rightmove sounded a note of caution, warning that such a strong recovery could not be sustained given the economic fundamentals, adding that estate agents may be colluding in vendors’ unrealistic perceptions of what their properties are worth, in order to win their business.

Miles Shipside, commercial director of Rightmove, said: "A price jump of over 3% is more comparable to the pre-credit crunch boom-times. "Sellers are setting their sights higher, and some agents are going along with them in order to win scarce instructions."

In the capital, far stronger growth was recorded than the national average, with the average asking price of a home leaping up 5% in the month –the biggest jump since records began in 2002. The biggest rise was witnessed in Westminster, where prices rose 14.9% in the month to £1.3m, while London’s most expensive borough, Kensington and Chelsea, saw a 4.6% increase to £1.9m.

According to Rightmove, the number of properties available for sale nationwide is creeping up, with 90,000 new listings posted in January. That is almost 20% higher than January 2009, although data for that month were skewed by the imposition of a ban on marketing property until Home Information Packs were in place. New property listings are still 37% below levels seen for January between 2005 and 2008.