Sellers know there is a shortage of supply of homes on the market and are therefore throwing caution to the wind on asking prices, according to Home.co.uk website.
This is particularly the case in Greater London where asking prices jumped nearly a percentage point over the last month, which corresponds with an additional £15,000 on the average home.
Home claims the total number of properties on the market has fallen to a new low.
Just over 386,000 properties are currently for sale- this is some 47 per cent less than in 2008.
So buoyant is the market that prices rose 0.3 per cent across England and Wales over the last month, which is the highest rise observed by Home in January since the onset of the financial crisis.
Overall, the current mix-adjusted average asking price for England and Wales is now 8.2 per cent higher than it was in January 2015.
The typical time on market is 117 days across England and Wales: nine days less than in January 2015.
Prices have risen in all regions except for the East, Scotland, Wales and Yorkshire during the last month.