House prices in the US rose 4.1 per cent on a yearly basis this February, says Zoopla.

While this is slightly below the 4.4 per cent growth measured in January, it does mark the fourth time in a row that price rises have been above 4 per cent – a consistency not seen since summer 2017.

Zoopla puts this down to heightened demand for properties, which will have only gathered momentum after the announcement of government intervention in high-LTV mortgages during the Budget in early May.

It says that currently, home supply is down 13 per cent versus the 2020 average and demand is up 13 per cent.

Zoopla also says that people looking for more living space has resulted in a 4.9 per cent year rise for houses compared to a 1.9 per cent price rise for flats.

“As lockdowns ease and vaccinations continue to be rolled out, we expect more pent-up supply to come back to the market as vendors feel more comfortable opening their homes for viewing, albeit with the usual seasonal Easter dip,” says Zoopla.

It adds: “Increasing activity levels among first-time buyers, especially as they take advantage of more 95 per cent mortgages from 1 April, will keep pressure on the demand and supply imbalance however, as these buyers have no properties to sell.”

Regionally, the North West boated the largest gain, at 5.4 per cent and London posted the smallest rise, at 2.3 per cent.

And on a city-by-city basis, Manchester clocked the largest annual change in house prices, at 6.6 per cent and Cambridge the smallest, at 2.1 per cent. Aberdeen was the only city to see a fall in house prices, at 1.3 per cent.

Canopy chief executive Tahir Farooqui says: “It can’t be ignored that the tax holiday is causing artificial inflation of house prices across the UK, making homeownership further out of reach for many current renters.

“While 95 per cent mortgages have been deemed part of the solution, the problem remains that hopeful buyers need to be considered creditworthy enough to secure a suitable mortgage in the first place.

“With the average renter plugging nearly £64,000 into the cycle of renting before they can finally save up to buy their first home, it is essential these monthly payments are taken into account for their credit score. Behaviours such as rent tracking should become the norm, aiding Generation Rent from the get-go, rather than continuing to put hurdles in their way.”