The CEO of an estate agents based in Bicester has said there is "a sense of optimism" after research revealed the average house price jumped by more than £3,000 month-on-month in February.

According to property website Rightmove, the average new seller asking price across Britain increased by 0.9 per cent or £3,091 this month to £362,839.

This increase is consistent with the usual seasonal jump seen in February.

The property market shows signs of strengthening, with the average asking price up 0.1 per cent from last year, after a phase of continuous falls each month since August.

The volume of sales agreed in the first six weeks of this year is 16 per cent higher than during the same period in 2023.

Michelle Niziol, chief executive at IMS Property Group in Oxfordshire, said: "It’s been a positive start to the year, particularly when compared to the slower pace of this time last year.

“There’s a sense of optimism, helped hugely by mortgage rates dropping in recent months, which now seem to have settled and remained stable, giving prospective buyers assurance and confidence.

"Despite the affordability constraints, we are still seeing a good level of activity in the first-time buyer market, which is encouraging the next time buyers to review their situation and supporting movement further up the property ladder.

"There is a good audience of buyers out there for properties priced well, also providing opportunities for those looking to sell."

Tim Bannister, Rightmove’s director of property science, said: "Mortgage rates have fallen considerably from their peak and are now remaining broadly stable after the uncertainty of late 2022 and 2023.

"Momentum to move in 2024 is continuing to build, but prospective sellers mustn’t get carried away.

"Buyers now have more choice of property for sale and many are still very price-sensitive, with mortgage rates remaining elevated."

A rental index from Hamptons, a property firm, stated that the average rents on newly-let properties across Britain rose by 8.3 per cent annually in January to £1,324 per month.

This indicated the slowest pace of growth for 13 months and the first time in six months that growth was in single digits.

The bulk of the rent increases during 2022 and 2023 were driven by landlords of smaller homes, reflecting higher demand for more affordable properties during the cost-of-living squeeze.

Aneisha Beveridge, head of research at Hamptons, said: "Last summer looks like it may have been the high watermark for rental growth.

"Since then, fewer landlords have been putting up the rent.

"Where they have, in cash terms, monthly increases have tended to be in double rather than triple figures."