The number of new instructions coming to market fell by 12 per cent on an annual basis in January, says Zoopla.

This means there are now 6 per cent fewer homes for sale than there were in January 2020.

Against this was a 13 per cent rise in demand for new homes recorded between in the first two weeks of January 2020, implying one major reason for the 4.3 per cent annual growth noted in December 2020 – the highest seen since April 2017.

Wales is the fastest growing market, notching 5.4 per cent price rises, while Liverpool, with prices rises of 6.3 per cent, is the fastest growing city in the UK.

This is the biggest growth figure seen in Liverpool for 15 years, Zoopla says.

Meanwhile, the North East, North West and Yorkshire and the Humber have each clocked up their highest growth in house prices since 2007.

The start of this year also saw an 8 per cent rise in new sales agreed on an annual basis – a rebound “broadly uniform across all regions and countries.”

This continues a trend that saw sales agreed in the second half of 2020 run 47 per cent higher than in H2 2019.

Zoopla adds that it calculates up to 70,000 sales agreed in 2020 being in danger of missing the stamp duty holiday deadline because sales are taking up to four months to complete.

This, it says, is because so many housing chains are dependent on the stamp duty cut.

Zoopla research and insights director Richard Donnell comments: “The housing market momentum built up in 2020 H2 has rolled into early 2021, despite a spike in the pandemic and a third lockdown. Sellers are more cautious, however, and appear to be waiting for case numbers to drop much further before listing their home, or until we see a return to tier based restrictions.

“The strength of the market in 2020 has eroded the available number of homes for sale and this will mean continued upward pressure on house prices in the short term. The most affordable parts of the UK are recording the highest rate of price growth for 10 years up to 5.4 per cent a year. We still expect house price growth to slow towards 1 per cent by the end of the year.”