The average asking price for a home in Britain climbed to £348,804 in February, up 2.3% from January, the highest rise in over 20 years, as demand in London bounced back after employees returned to the office following the easing of COVID-19 restrictions.
According to a survey by property website Rightmove, prices were 9.5% higher than a year ago, the strongest annual rate of growth since September 2014.
Asking prices in London grew by their fastest rate since 2016 and the capital saw the highest rise of enquiries from buyers among all the British regions.
UK housing demand surged after restrictions were lifted following the first pandemic lockdown in 2020, boosted by the government’s stamp duty holiday, which expired last autumn.
“The data suggests that people are by no means done with their pandemic-driven moves,” said Tim Bannister, Rightmove’s director of property data. “Such a significant societal event means that even two years on from the start of the pandemic, people are continuing to re-consider their priorities and where they want to live.”
The number of potential buyers rose by 16% in February, higher than the 11% increase in the number of properties put on the market, putting further upward pressure on prices.
Buyers appear to be shrugging off the rise in interest rates and the cost of living, with housing demand increasing ahead of the busy spring season.
“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,” said Bannister.
“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.”