The average cost of a home in England rose by more than £7,400 during the past month, according to new figures.

The 3.2% rise saw the average cost of a home in England and Wales jump to £237,856 during the four weeks up to February 9, according to property website Rightmove.

But while there are signs of renewed optimism among sellers, Rightmove warned that the figure may have been distorted by the final rollout of the Government's Home Information Packs (Hips).

At the same time the surge may simply be correcting a 3.2% slide in prices seen in December.

And it is usual for new sellers, under less pressure to sell, to test the market at a higher price therefore driving up asking prices.

However, a shortage of properties being put on the market has left estate agents competing for business, leading to an exaggerated seasonal boost, Rightmove said.

The lower level of listings could partly be due to the market slowdown, but it was also likely to reflect a lack of speculative sellers, who have been put off selling their home due to the cost of compiling a Hip, the group said.

Hips have not only led to a shortage of homes on the market, but could also have artificially boosted the level of asking prices of homes being put up for sale during the past month.

There were fewer cheaper one and two-bedroom homes being put on the market during the last month as sellers had rushed to market these homes before the requirement for a Hip came in to force on December 14, Rightmove said.

Without Hips, asking prices would have increased by between 1.5% and 2% during the past month, more in line with the traditional February bounce, the group estimated.

It added that the 3.2% gain seen in February mirrored the 3.2% fall in asking prices seen in December, repeating the pattern seen before the introduction of Hips for three-bedroom properties, when prices fell by 2.6% in September, only to rise by 2.7% in October.

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