House prices soar by nearly £8k in one month

21 February 2022, 14:48

The average asking price has risen by nearly £8,000.
The average asking price has risen by nearly £8,000. Picture: Alamy

By Sophie Barnett

The average asking price for a house in the UK now sits at a record level after it jumped by nearly £8,000 in February, new figures show, as demand continues to boom post-Covid.

Listen to this article

Loading audio...

Rightmove, the UK's largest online property website, recorded its biggest ever monthly rise in February for the average asking price for a house.

The property site says typical price tags rocketed by £7,785, with sellers now asking for nearly £349,000 on average - a 9.5 per cent increase on this time last year.

It's the biggest month-on-month increase recorded by Rightmove in more than 20 years of its reporting.

The new record means that average asking prices have now risen by nearly £40,000 in the two years since the coronavirus pandemic started, compared to just over £9,000 in the previous two years.

Read more: Cost of living crisis: How will the energy price cap rise affect you?

Read more: Now Franklin batters Britain: Transport chaos as third named storm sweeps in

NI Hike and energy price rises could be PM's 'most critical test'

The jump comes as households face a cost of living squeeze, with energy bills set to soar in April along with a rise in National Insurance.

Ofgem reviewed its price cap on energy bills earlier this month, upping it by £693 per year to £1,971.

Bills will be capped at the updated rate between April and October, meaning another £58 on bills every month for the typical household.

Meanwhile, National Insurance will rise by 1.25% in April.

These hikes, paired with the rise in average asking price for homes, will pose a barrier for those hoping to get onto the property ladder.

Read more: Jamal Edwards' mum leads tributes to music mogul who died aged 31 after ‘sudden illness'

Boris Johnson on cost of living crisis

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."

Read more: Living with Covid plan: How Britain is set to change in the days ahead

Rightmove said February's price growth is being driven by the "second stepper" sector - comprised of buyers who may find themselves in need of more space and are now ready to move on from their first homes.

As some workers are being encouraged to return to the office, London has seen a particularly big jump in home buyer inquiries.

More Latest News

See more More Latest News

PETA has asked a Birmingham pub to change its "offensive" name.

Animal rights activists target beloved Birmingham pub over 'derogatory' name

Barbara Taylor Bradford who has died aged 91

Best-selling A Woman of Substance author Barbara Taylor Bradford dies aged 91

Mussie Imnetu

Charity worker denies murder of top chef killed following attack near Notting Hill Carnival

Davina McCall shares health update as she reveals 'short-term memory problems' following brain surgery

Davina McCall shares health update as she reveals 'short-term memory problems' following brain surgery

County Hall Maidstone, Kent.

Labour to abolish 'dozens' of councils in biggest reform for a generation

Manhunt after girl, 8 shot in Ladbroke Grove

Gunman on the run after girl, 8, seriously injured after being 'caught in the crossfire' in double shooting

Exclusive
LBC’s Nick Ferrari has remembered being spiked while at a party.

‘The whole world was spinning’: Nick Ferrari candidly recalls drink spiking as he shares 'appalling' side-effects

Jess Phillips pledges £250k to curb drink spiking - as she hits out at Tory inaction over women's safety

Jess Phillips pledges £250k training budget to curb drink spiking - as she hits out at Tory inaction over women's safety

Dr Philip Nitschke enters a 'suicide pod' known as 'The Sarco'

Inventor of Sarco death pods say he will bring device to UK - despite first user being found with 'strangulation marks'

UK unveils AI cyber defence lab to combat Russian threats, as minister pledges unwavering support for Ukraine

British spies to ramp up fight against Russian cyber threats with launch of cutting-edge AI research unit

Donald Trump is suing CBS

Donald Trump planning to 'kick transgender troops out of US military' on return to White House

Coleen Rooney revealed details of her encounter with Donald Trump

Coleen Rooney reveals 'dirty' Donald Trump's bizarre request to Wayne as she tells of remark president made about her

Live
Flooding causes havoc in the UK.

LIVE: Storm Bert causes massive rail commuter chaos as 150 flood warnings remain in place

Storm Bert has wreaked havoc

Storm Bert flood chaos continues as new 'danger to life warning issued' after 5 die with more travel misery ahead

Plane crash kills at least one as DHL cargo plane as it smashes into houses on approach to Vilnius Airport

At least one dead as DHL cargo plane crashes into houses during approach to Vilnius Airport

Rachel Reeves' Budget has put business off hiring, a business group has said

Labour's Budget tax raid 'puts companies off hiring' as businesses fear they 'can't afford to take a chance'