Eight buyers chase every home

House prices have grown by 12% annually, although the figure dipped 1% on month to £207,412.

Transactions increased 17% annually and 7% monthly.

David Plumtree, chief executive of Sequence, said: “Activity in the market and competition for property across the country is heating up as we edge closer to spring.

“The shortage of available property is resulting in rapid price growth, with the average UK house price now 12% higher than this time last year and showing no signs of slowing down unless the supply/demand imbalance is rectified.

“With the Government’s redirection of finance from the Funding for Lending Scheme and interest rates expected to rise sooner rather than later, homeowners considering selling should seize the window of opportunity now.”

In London house prices have grown at a staggering rate, with average prices rising by 22% to £441,256, as over 13 new buyers compete for every property.

The number of new instructions have risen by just 13% as prices continue to grow.

First-time buyer mortgage applications rose by 7% on month and 13% annually, while applications for sellers also increased by 5% and 18% year-on-year.