Rightmove says vendors are over optimistic.

The property website 'Rightmove' reports that overly optimistic sellers increased asking prices in April by 1.7% but potential buyers continued to stay away from the market, leading to a high proportion of unsold houses.

It was the fourth consecutive month during which new sellers have raised their asking prices, leaving the average property on the market in England and Wales with a price tag of £235,822 - 6pc or £13,400 higher than at the end of last year.

Rightmove warned that sellers' optimism was misplaced, as a jump in homes on the market had not been matched by a rise in buyers who were able to go ahead with a purchase.

The mismatch between supply and demand led to the number of unsold properties estate agents had on their books rising at its fastest level since May 2007 to an average of 74 homes a branch.