Sunbury-on-Thames, whose name evokes a feeling of warmth, has become known as a property hotspot. Surrey towns saw the biggest increases in asking prices in the UK last year, with an average increase of 12.5%, from £527,005 to £592,976, according to listings website Rightmove.

The town has long been popular with commuters as it takes less than an hour to reach London Waterloo Station and is close to the recently expanded Shepparton Studios, which now claims to be the second largest film studio in the world studio.

Second on the Rightmove list are Bristol city center and Swindon in Greater Manchester, both of which have seen asking prices rise by 9%. In Bristol, the average house price is £391,042, while in Swindon (part of Salford) the average house price is £264,081.

Rightmove said average asking prices across the UK rose by just 1.4% last year, while in London they fell by 0.8%.

However, other price indexes grew more strongly than this. The National Building Society recently reported that UK house prices rose by 4.7% in the 12 months to December; on Wednesday, the Office for National Statistics said the annual rate of growth in November was 3.3%.

Figures from the Office for National Statistics showed a 0.4% fall for the month, which some commentators said may reflect buyer hesitancy due to economic uncertainty.

Karen Noye, mortgage expert at wealth management firm Quilter, said: “Recent turmoil in bond markets has put upward pressure on mortgage rates and this uncertainty will be further exacerbated.

“This dynamic could dampen demand, particularly among first-time homebuyers already stretched by rising costs of living and tighter lending standards.”

Mortgage rates have been volatile over the past few months as money markets reacted to conflicting economic data.

Noe said the expected cut in the Bank of England's benchmark interest rate would "provide some relief to borrowers, but the extent of the impact will depend on how the Bank of England responds to ongoing bond market volatility".

In the short term, buyers in England and Northern Ireland will face changes to the stamp duty threshold in early April, which may mean some are trying to bring forward their relocation plans.

The latest market overview from the Royal Institution of Chartered Surveyors (Rics) shows an upward trend in sales in December, with estate agents reporting an increase in new buyer inquiries and the number of homes coming onto the market.

It said the rebound in supply "may be due to changes in stamp duty".

Rics added that house prices were rising in every region of the UK, with Northern Ireland and Scotland experiencing the strongest growth.

Rightmove said it expects asking prices to rise by 4% this year and sales to rise to 1.15 million units.

Steve Pimblett, chief data officer at Rightmove, said: “Agents tell us that even during the market slowdown since mortgage rates rose, quality homes in popular areas continue to attract buyer interest.

"We predict the market will be busier this year in terms of price increases and sales, especially if mortgage rates fall."