The average price of a first-time buyer home has hit a record £214,176, according to the latest Rightmove House Price Index.

This latest figure for January represents a rise of 1.4% from December, as well as a 6.8% climb from January last year.

According to Rightmove’s data, the average price for all property coming to the market also jumped by 0.3% this month, equivalent to a climb of £852, to sit at an average £341,019. This is 7.6% higher than in January 2021 and the highest annual rate of price growth recorded by Rightmove since May 2016.

Rightmove reported that strong demand as well as continuing low numbers of available homes for sale have set up a “housing market frenzy”, which looks to continue into the start of 2022. The property expert believes competition among house buyers is almost double what it was at this time last year.

“New Year sellers and buyers have been quick off the mark this year, with Rightmove recording the highest ever number of Boxing Day sellers coming to market,” commented Rightmove director of property data, Tim Bannister.

“These early-bird sellers who got themselves ready to come to market are now benefitting from the busiest start to the year that we’ve ever recorded, with the number of prospective buyers enquiring about homes up 15% on this time last year. People who have made it their New Year’s resolution to move are finding asking prices are within just 1% of the record from October last year, and are at the highest level ever recorded for first-time-buyer type homes.

“All of the signs suggest that prices are likely to continue to rise until more choice is available. Three regions are in most urgent need of new supply, the East Midlands, South West and South East of England, as they are now at unsustainable rates of annual price growth above 10%.”

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