Asking prices have jumped by more than £5,000 so far this month as calm in the mortgage market fosters more confidence in property values.

The average price of a newly marketed house rose by 1.5pc to £368,118 in March, according to figures from Rightmove. That equates to a £5,279 increase, which markets the biggest rise in 10 months.

In a further sign of recovery for the UK housing market, the number of sales being agreed has risen 13pc compared with this time last year.

Tim Bannister, director of property science at Rightmove, said: “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.”

London saw the biggest increase in demand for properties compared with this time last year, as slowing inflation, wage increases and a push back to offices among employers made the capital more appealing.

Much of the activity in the housing market has been driven by sales of properties to wealthy buyers for whom mortgage rates are less of an issue. So-called ‘top-of-the-ladder’ sales were up 18pc in March so far compared with last year, Rightmove said.

Despite March’s jump, average asking prices are still £4,776 lower than their peak in May 2023.

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