In its latest house price index the property website revealed a disparity between supply and demand in the UK housing market with fewer properties available this year for a greater number of potential buyers.

This imbalance, said Zoopla, was most pronounced in northern cities such as Sheffield, Liverpool and Manchester where house price growth was above average.

But, when compared to pre-lockdown levels, new sales were up 28% as the surge in demand for homes, which developed when the property market reopened in May, converted into sales.

What’s more the house price index registered a 2.7% growth annually.

Shifting dynamics

Although London experienced an immediate increase in sales after the chancellor announced he was increasing the stamp duty threshold, in other areas of England there has been less of an impact, said Zoopla.

It said the average property prices in these other regions were lower and less responsive to stamp duty changes. And while Zoopla thought it would support demand in higher value markets – on property prices up to £500,000 – across southern England, it was unlikely to sustain demand indefinitely into 2021.

Richard Donnell, research and insight director, Zoopla, said: “Covid and the lockdown have shifted the dynamics of supply and demand across the housing market.

“The staggered reopening of housing markets across countries and the added impetus from the stamp duty holiday mean we expect buyer demand and new sales volumes to hold at current levels over the next two months.

“The net result will be continued support for house price growth at current levels over the second half of the year. Regional cities in northern England and the Midlands have the strongest underlying trends.

He added: “The impact on pricing looks set to be pushed into 2021 as a result of sizable government support for the economy.

“Further support cannot be ruled out while forbearance by lenders, and the availability of the mortgage payment deferrals, which can start up until the end of October for three to six months, is likely to limit the scale of downside for house prices.”

‘Promising’

Steve Seal, managing director at Bluestone Mortgages, said: “It is promising to see house sales returning to pre-Covid levels and buyer demand at a healthy level, as indicated by today’s Zoopla figures.

“While the stamp duty cut should help rally demand in the short-term, we will need to address a more crucial issue over the long-term – supporting the growing numbers of borrowers who are not able to secure high-street lending once the pandemic subsides.”