Asking prices have risen by 3.3% since Christmas, buoyed by record numbers of potential buyers, said Rightmove.

The group said estate agents had reported a 40% surge in viewings compared with the same period in 2003.

The average asking price for a home currently stands at �174,506, the Rightmove survey added.

Agents busy

"The sharp surge in asking prices since the new year looks set to feed through into higher transaction prices, as agents report a very busy January and February, with strong interest from prospective buyers," Miles Shipside, commercial director of Rightmove said.

The group added that there was no sign of the market cooling significantly in response to the decision by the Bank of England to raise interest rates twice since November.

Overall, asking prices were on the rise in 7 out of 10 regions.

The West Midlands showed the strongest price growth, followed by the North and Wales.

Prices in Greater London rose 4.1%, faster than the national average.

However, in the East Midlands prices fell by 1.5%, while in Yorkshire and Humberside they were 1.1% lower and in the South West they were down by 0.1%.