The average property price increased by 7.6% on an annual basis in January, shows data from Rightmove.

This is the fastest growth rate seen since May 2016, and leaves the average house price at £341,019.

Between December 2021 and this month, house prices ticked up by 0.3%.

For first-time buyers (FTBs) specifically, Rightmove shows that house prices went up 6.8% on an annual basis and 1.4% on a monthly basis, taking the average house price for this market segment to £214,176.

Rightmove adds that buyer enquiries is up 15% annually while the number of homes available for sale per estate agent branch is at an all-time low of 12.

However, valuation requests moved up too at the start of January, by 44% on the year, and by 48% compared to January 2020, leading Rightmove to suggest that housing supply is set to increase soon.

Rightmove director of property data Tim Bannister comments: “People who have made it their New Year’s resolution to move are finding asking prices are within just one per cent of the record from October last year, and are at the highest level ever recorded for FTB 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%.”

And MT Finance director Tomer Aboody says: “With such a lack of supply of good properties on the market, combined with plenty of cheap mortgages, buyers are pushing themselves to make sure they don’t miss out and asking prices continue to rise as sellers take advantage. If that means having to pay more for a home, then many buyers are prepared to do so.

“With inflation continuing to rise and higher mortgage rates likely at some point, this situation is unlikely to change in the short term if the supply situation does not improve. It remains to be seen what will happen as something approaching ’normality’ returns and things settle down.”