Sheffield property: Average house price in city hits record high of £228K and will increase further

Mark Ross, managing director of Redbrik, made the prediction after the average figure was revealed in the Rightmove price index.

It showed prices in Yorkshire were up 12.6 per cent from last year and in Derbyshire were up by 13.3 per cent. Yorkshire also scored the most significant monthly change, with property prices coming onto the market increasing by 6.2 per cent.

Mr Ross, co-founder of Redbrik, said the number of new sellers listing their homes for sale was up by 11 per cent compared to the same period last year.

He added this was great to see because it offers buyers some much-needed fresh property choices. “We expect to see prices continue their upward trajectory,” said Mr Ross.

Demand for property continues to increase across South Yorkshire and North Derbyshire, particularly from first-time buyers and the 'second stepper' sector – those in need of more space and ready to move on from their first homes.

Mr Ross said: "Local homeowners are getting the value they deserve for their homes, which is often their most significant investment.

"The hopes we all had for 2022 are coming to life, and I'm excited to see homeowners able to achieve the moves they've been waiting for.

"There is significant equity in the housing market, as only 50 per cent of homeowners have a mortgage. In addition, as the 'Living with Covid' plan starts to kick in and restrictions lift, it's likely we'll see more activity and a thriving market for both buyers and sellers as we move into spring."

The average price of properties coming on to the market in the UK also hit a record high this month. Prices increased by 2.3 per cent, or £7,785, the biggest monthly jump ever recorded by property website Rightmove.

Asking prices across the UK are now 9.5 per cent higher than a year ago, the highest annual growth rate since September 2014.

However, property purchasing specialist HBB Solutions says that despite a property market boom, the gap between the asking price expectations of the nation’s sellers and what buyers are willing to pay is as big as -21 per cent in some areas of the market.

Its research shows that across Britain, the asking price to sold price gap averages 8 per cent. This means that while the average home is selling for £278,120, it is initially entering the market at £301,080 - £23,000 higher than the price buyers are currently willing to pay.

This property price gap currently sits at -19 per cent in Yorkshire and Humber, the third largest reduction in value and a £46,000 gap between the average asking and sold price.

Chris Hodgkinson, managing director of HBB Solutions, said: “Disputes around price are one of the most common causes that can scupper a potential sale, even after an initial offer has been accepted.

"The best advice to avoid this scenario is to price your home ambitiously, but sensibly. Stand your ground to an extent but be prepared to negotiate and work to current market values, not your perceived value.”