The average price tag on a home increased by 1.1%, or £3,876, this month, which is in line with the usual rise in March, despite stamp duty discounts becoming less generous from April, a property website said.

Across Britain, the average price of a home coming on the market this month is £371,870, according to Rightmove.

While new spring buyers will not beat the stamp duty deadline, they will benefit from the highest property choice at this time of year for a decade, Rightmove said.

It added that the volume of sales being agreed is 9% higher than at this time in 2024.

Colleen Babcock, a property expert at Rightmove said: “Historic averages show that this March is likely to be one of the strongest months of the year for sellers to spring into action.

“However, sellers can’t just rely on these historic averages for success, as this year they are facing a decade-high level of competition.

“Those who are successfully finding buyers right now are working hard with their agents to price competitively and present their home in the best possible light.

“The big milestone ahead in England is the stamp duty deadline, and with a massive logjam of 575,000 moves going through the legal completion process, many cost-conscious buyers will be doing all they can to get their move over the line and avoid unnecessary extra tax.

“Whilst agents tell us that they have been working with both sellers and buyers to factor in the additional charges, many movers are understandably hoping to reduce their tax bill and keep their savings for themselves.”

Persistently high mortgage rates are dampening some of the market optimism and activity, the report added.

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According to Rightmove’s weekly mortgage tracker, the average five-year fixed mortgage rate is now 4.74%, which is lower than a peak of 6.11% in July 2023, but only a marginal improvement on 4.84% at this time last year.

Matt Smith, a mortgage expert at Rightmove said: “We’re still seeing lenders price competitively where they can to secure mortgage business at this typically busy time of year.

“However, the economic turbulence happening globally is impacting mortgage rates, and we’re seeing some small rate fluctuations on a week-by-week basis.”

Stamp duty discounts are set to become less generous in April, with the “nil rate” threshold for first-time buyers reducing from £425,000 to £300,000.

Stamp duty applies in England and Northern Ireland.

Sarah Bush, head of residential sales and lettings at Cheffins, said: “Despite the wider economic outlook appearing to hold some uncertainty, the message we have received from sellers is that they are tired of sitting on the fence and really want to get on with moving this year.

“We may well see an impact on the entry level of the market as the nil rate threshold drops, however, many buyers seem to be fairly relaxed about the imminent stamp duty changes from the April 1.

“Stamp duty at all levels has become a cost to be swallowed and we don’t forecast this to have a major impact on activity in the market.”

Chris Rosindale, chief operating officer at Connells Group, said: “Some stability in interest rates and modest house price growth have certainly helped to increase confidence from both buyers and sellers, and overall attitudes towards moving home are positive. Pricing is still key and setting realistic asking prices is vital to achieving the best sale.”

David Morris, head of homes, Santander UK, said: “It’s unsurprising that many prospective homeowners and movers are making the final push to complete ahead of the April 1 stamp duty changes, the difference of just one day could mean buyers face extra costs of up to £11,250 in taxes.

“But the end of the stamp duty holiday hasn’t seemed to slow the market, with agreed sales up 9% year-on-year, buyer choice at a 10-year high and at Santander, we’re continuing to see a healthy stream of applications coming through the door, irrespective of the April deadline.”

Nathan Emerson, chief executive of Propertymark, said: “It is positive to see the housing market demonstrating ongoing resilience, especially as we continue to see wider economic uncertainty.”

The report was released as a separate index from property firm Hamptons found that over the 12 months to February, the average cost of a newly agreed let in Britain rose by 1.0%.

It said this was the slowest rate since September 2020, when rental prices started returning to growth after falling at the start of the coronavirus pandemic.

The pace of rental growth has been dragged down by London, where newly agreed rents were down 2.8% on a year earlier.

The falls put the cost of moving into a new rental property in London back to May 2023 levels, the report said.

Aneisha Beveridge, head of research at Hamptons, said: “Tenants moving into a new home have seen rental growth grind to a halt, with prices rising at the slowest rate since September 2020.

“Londoners, in particular, have seen rents go backwards.”

She added: “Some tenants who moved relatively recently may be able to find themselves a better deal by moving again.”