The average price of properties coming to market rose by 0.8% to £2,589 in February, just £40 short of a new all-time high, according to Rightmove.
The number of sales nationally also increased by 12.3% during the month, as well as 25.4% in London. According to the report, Humber and Yorkshire saw the fastest monthly increase in prices, a rise of 3.5% to an average of £197,000.
Miles Shipside, Rightmove director and housing market analyst said there is a “boom” in buyer activity outstripping the “rise” in the number of new sellers.
He added: “The average price of newly-marketed property is just £40 below its all-time high from June 2018, with the typically busy spring market still to come. This means that spring buyers are likely to be faced with the highest average asking prices ever seen in Britain.
“Buyers who had been hesitating and waiting for the greater political certainty following the election outcome may be paying a higher price, but they can now jump into the spring market with renewed confidence. After three and a half years of Brexit uncertainty, dither, and delay, many now seem to have the 2020 vision that this is the year to satisfy their pent-up housing needs.”
Rightmove also reported a 7.2% increase in monthly traffic compared with 2019, with over 152 million visits in January. The traffic also grew in the first week of February by 9.2%, compared with the same week in 2019.
Lucian Cook, head of Savills residential research, said: “Since the election we’ve certainly seen a significant uptick in new buyer demand in the prime market which creates a real opportunity for sellers while stock for sale remains relatively low.
“Increased confidence is translating into increased activity, both in the prime market and across the wider market as a whole. It is clear that the market remains largely dictated by sentiment. Our own agents are reporting that the vast majority of buyers remain unwilling to increase their budgets.”
He added: “Accordingly, our advice remains that sellers need to remain pragmatic on price, particularly given some of the uncertainty around an impending budget, the first of the new Government.”