Asking prices for property in have jumped at their fastest pace on record, prompting renewed fears that home ownership is becoming increasingly unaffordable for people not yet on the ladder.
Rightmove reported average asking prices were up nearly £8,000 over the past month, the largest increase since the property website began collecting data 20 years ago.
Asking prices are 9.5 per cent higher than they were a year ago with signs that both buyers and sellers "fear missing out", Rightmove said.
The average list price of a home jumped £40,000 to £348,804 in two years since the pandemic began, compared to a £9,000 increase in the previous two years.
Potential buyers sent 16 per cent more messages to estate agents than they did this time last year, while the number of people requesting a home valuation from an estate agent was up 11 per cent.
The sharp increase in asking prices comes at a time when households are being squeezed by rising living costs, including for energy, food, clothing and fuel.
Rightmove said high demand for homes and a shortage of available stock were pushing prices upwards.
However, there are signs that balance may be beginning to return to the market. The number of sellers putting their homes up for sale rose 11 per cent compared to a year ago, while the number of buyers requesting a home valuation rose by the same percentage.
Tim Bannister, Rightmove’s director of property data comments: “The data suggests that people are by no means done with their pandemic-driven moves.
"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.
"As the final legal restrictions look to be ending soon, and more businesses are encouraging a return to the office for at least part of the week, 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."
