A shake-up of inheritance law is being proposed

Property asking prices are now higher than they were a year ago following a 2.8% jump during the past month, research has shown.

The ongoing shortage of homes on the market, combined with strong buyer demand, fuelled the £6,188 rise in asking prices in England and Wales during the four weeks to October 10.

The increase was the biggest since February last year and the largest for October for six years, according to property website Rightmove.

It left the average property on the market costing £230,184 - 0.2% more than during the same period of 2008.

The group said it was the first time it had recorded a year-on-year increase since June 2008.

The annual gain was led by a strong recovery in the London property market, where a combination of property shortages and increased buyer demand have left asking prices 5.2% higher than they were a year ago.

At £416,157 the average cost of a home on the market in the capital is now the highest ever recorded by Rightmove, and 0.8% above the previous peak in November 2007.

The group said it was "highly unusual" to see such a strong sellers' market at this time of year, especially given the current economic backdrop.

Miles Shipside, commercial director of Rightmove, said: "It's a little bit crazy to have a sellers' market given the time of year and the warnings of imminent fiscal austerity by all of the main political parties.

"Agents in the north as well as the south are reporting that quality properties are often selling within the week."