Asking prices rise as agents fight for business

Its house price index shows the average asking price for a home in England and Wales rose from £213, 570 to £216,163.

The company warned this is not an indication that the market may be starting to recover. Instead it said the shift is due to the lack of property on the market, which is tempting estate agents to raise valuations to attract business.

In January 75,140 homes came on to the market, down from 137,442 a year ago.

Rightmove commercial director Miles Shipside said: ‘A lack of fresh stock leads some agents to suggest a more optimistic initial asking price, influencing a seller to give the most bullish estate agent the instruction to sell.

‘This is a traditional tactic employed at the start of every year to attract fresh stock, but is a shortsighted move for both parties in a falling market.’

He said the shortage of stock could be eased by repossessions, with record numbers rumoured to be in the pipeline.

Earlier this month mortgage lender Halifax reported that prices rose 1.9 per cent in January across the UK, but warned against reading too much into one month’s figures.