The average price tag on a home jumped by more than £3,500 month-on-month in October, but the market is still price sensitive, with prices “virtually flat” compared with a year earlier, according to a property website.

Across Britain, the typical asking price for a home coming on the market is 1.0% or £3,575 higher month-on-month, Rightmove said.

This took the average asking price to £371,015, which is 0.1% lower than a year ago.

In London, the average asking price jumped by 2.5% month-on-month to reach £673,942.

But the October growth in prices follows a particularly weak summer in London, with new sellers there clawing back some of that lost ground, Rightmove said.

The average asking price in London in October was still 1.7% less than a year ago.

London typically experiences stronger seasonal price growth at this time of year, with sellers coming to market in the autumn, when there are typically more active buyers, Rightmove said.

Colleen Babcock, a property expert at Rightmove, said: “The rapid rise in mortgage rates is really beginning to hit buyers’ budgets.

“We’re now seeing mortgage rate rises feed through to seller pricing in many of the cheaper parts of Great Britain, where prices had been more resilient this year.

“It’s an early sign that higher mortgage costs are putting pressure on affordability even in markets with lower property prices, affecting the areas and types of property that buyers can afford.

“This is a stark reminder of how price sensitive the market is, and the message from agents, backed up by our data, remains the same – that competitive pricing from day one of marketing is critical to capitalise on initial buyer interest.”

Rightmove said the number of new potential buyers contacting agents about properties is 9% lower than a year ago, and the number of new listings coming to market is 3% higher.

The total number of homes available for sale remains at its highest level for this time of year since 2014, with the high volume of homes for sale contributing to muted new seller asking price growth, the website said.

Ms Babcock added: “Higher mortgage rates are putting pressure on affordability across Great Britain, but sellers appear to be responding in different ways.

“Some have room to lower their expectations, while others need to hold firm on price to make their next move add up, even if that means waiting longer for a buyer.

“In such a price-sensitive market, the guidance and expertise of a local agent are paramount.”

Matt Smith, a mortgage expert at Rightmove, said: “It’s been a difficult few weeks for home buyers who have been watching mortgage rates rise quickly, particularly for those who had worked out what they could afford based on lower rates earlier in the year.

“Some buyers will understandably be reassessing their budget and what they can afford or feel comfortable borrowing.”

Michael Donnachie, director at Michael Anthony Village Estates in Aylesbury, said: “With mortgage rates rising buyers are having to be more considered about what they can afford and what represents good value.

“That makes getting the asking price right from day one incredibly important.”

Marc von Grundherr, director of Benham and Reeves in London, said: “There’s certainly an element of seasonality at play, with the summer firmly behind us and the London market gearing up for one final push before Christmas.”

Nathan Emerson, chief executive of property professionals’ body Propertymark, said: “Looking ahead, much will likely depend on how inflation, interest rates and mortgage affordability evolve over the coming months and into the new year.”

The research was released as a survey from Barclays indicated that a quarter (24%) of homeowners would be open to downsizing. One in 10 (10%) said they have downsized.

On average, homeowners said they would need to release around £108,516 from their property sale for downsizing to feel worthwhile.

Costs were found to be an obstacle to downsizing, with 27% of homeowners saying stamp duty costs would put them off and 21% highlighting moving costs. A fifth (20%) highlighted renovation or adaptation costs and 19% mentioned legal or conveyancing fees.

Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “Downsizing can give homeowners the opportunity to find a property that better suits their needs, reduce household costs and strengthen their financial resilience.

“However, the decision is rarely as simple as moving to a smaller home.

“Significant upfront costs and a shortage of suitable options can make a move difficult to justify, even for those who are open to it.”

Opinium Research surveyed 2,000 people across the UK in August for Barclays.