The average price of newly marketed properties in the UK increased by 1.5% month-on-month, now standing at £368,118, the biggest increase in 10 months, Rightmove has found.

The firm’s house price index (HPI) also revealed that while average asking prices are still £4,776 below the peak in May 2023, more people are seeing a "window of opportunity to buy".

The number of sales being agreed increased by 13% year-on-year, with buyer demand also jumping by 8% in the same period, led by the less mortgage-rate-sensitive larger homes sector and London.

However, in its HPI, Rightmove said that despite a "better-than-expected" start to the year, the market remains sensitive in pricing and external events, including a lacklustre Spring Budget.

The average time to find a buyer is 71 days, which is the longest at this time of year since 2019. Attractively priced properties being quickly sought after, with over-optimistically priced sellers taking longer to find a buyer.

Director of property science at Rightmove, Tim Bannister, said: "March is typically a strong month for asking price growth, as both buyer and seller activity levels rise and the spring selling season gets underway. However, the stronger than usual price growth this March indicates that new sellers are feeling much more confident, with some perhaps being over-optimistic, that there is enough buyer activity and affordability in their local market to achieve a higher price.

"Despite the above average price increases in this opening three months of the year, asking prices are still £4,776 below their peak in May 2023. For those who can afford to buy and have yet to take action to move this year, this may provide a window of opportunity to buy as we now seem to be past the bottom of the market. While some sellers are still being over-optimistic with their pricing expectations, there are also more sellers who are aware of the need to be negotiable and realistic, with elevated interest rates compared to recent years still stretching affordability for many buyers."

All regions of the UK saw a month-on-month increase in house prices, with just three regions witnessing a drop in yearly house prices.

Year-on-year, the South East saw its house prices drop by 0.7%, with the South West and the East of England also dropping by 0.3% and 0.2% respectively.

The North West was the region that recorded the highest increase in year-on-year house prices, jumping by 2.6%, with the average house price standing at £257,185.

House prices in London also increased by 0.9%, with the average house price sitting at £686,844, the highest in the UK.

National account manager at Saffron for Intermediaries, Phil Lawford, added: "There is no doubt that the market is on steadier ground than it has been for some time. In February, the Royal Institution of Chartered Surveyors reported that buyer demand was at its strongest in two years, and falling swap rates at the beginning of the year triggered a rates war as lenders tried to convert this demand into custom.

"While there is clearly much to be positive about, the role of the broker remains crucial in an environment where uncertainty and volatility hide beneath the surface. With rates creeping up (albeit after a flurry of cuts) and the average shelf-life of a mortgage product falling from 28 days to 15 days over the last month, we are not quite yet over the hump and both lenders and advisers will need to work hard to help borrowers find solutions that work for them. That being said, we are optimistic about the year ahead, and look forward to helping as many people as possible buy or build their dream home."

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