Property asking prices jump £1,500 in January as optimism surrounds 2016 market

House-sellers' asking prices jumped by £1,500 in January amid signs that the market is in for a buoyant year, a property website has reported.

A 0.5% or £1,509 month-on-month increase in the price of property coming on to the market took the average asking price to £290,963 across England and Wales, Rightmove said.

There were also some positive signs for people trying to take their first step on the property ladder, as they may find they have a wider choice of properties compared with January 2015.

The report said there has been a 6.6% year-on-year increase in the number of fresh-to-the-market homes in first-time buyers' target sector of homes with two bedrooms or fewer.%VIRTUAL-ArticleSidebar-property-guide%

The increased supply may also provide some encouragement for buy-to-let investors who are looking to snap up properties before a stamp duty hike comes into force in April.

From April 1, people buying additional properties, such as buy-to-let properties and second homes, will pay an extra three percentage points above current stamp duty rates.

Rightmove said there are already early signs of strong demand for homes this year, with the number of visits to its website in the first working week of January up by 21% compared with a year earlier.

Miles Shipside, director of Rightmove, said: "In this stock-starved era it will come as a relief to first-time buyers that their negotiating power may already be improving because of the forthcoming tax changes (for buy-to-let investors), and there is a window of greater choice as more owners of smaller properties try to sell.

"Rather than waiting until later in the year, having a good look around now while choice is up and interest rates remain unchanged could get you on to the ladder sooner and at an acceptable price."

Every region across England recorded higher average asking prices in January 2016 compared with January 2015.

The East of England saw the biggest annual increase, with asking prices up by 9.8% compared with a year ago, reaching £312,921 on average. London saw the next biggest annual rise, with asking prices up by 7.8% on a year ago to reach £610,741 typically.

Yorkshire and the Humber saw the smallest annual increase in asking prices in regions across England, with a 2.8% increase, which took the average asking price there to £165,722.

Meanwhile, in Wales, asking prices were down by 0.5% annually, at £166,051 on average.

Rightmove quoted the views of estate agents from around the country.

David Blythman, managing director of scottfraser in Oxfordshire, said: "We've seen a strong start to the year in Oxford with an increase in general seller enquiries while buyer demand stays strong.

"Any potential sellers considering coming to market to take advantage of selling to an investor would need to move fast so they have the chance to complete before the end of March."

Julian Peak, regional sales director of KFH South East and Kent, said: "Some areas of London have seen exceptionally strong demand in the opening weeks of the year.

"South-east London has been incredibly busy with more than double the number of buyers registering interest compared to the same period last year."