Annual house price gains in England and Wales could reach a dizzying 17.5 per cent by December, although there are signs that a slowdown is looming in the New Year, according to forecasts by Reallymoving.

The website captures the purchase price buyers are planning to pay when they search for conveyancing quotes through its comparison service.

Buyers typically search for quotes twelve weeks before their purchase completes, which provides an indicator of house price trends over the months ahead.

Its data suggest that average prices could reach £341,999 by the end of this year, following predicted monthly increases of 6.1 per cent in October, followed by 1.1 per cent in November and 1.5 per cent in December.

Reallymoving chief executive Rob Houghton says: “Our data indicates continued strong price increases in the run up to Christmas but the slowdown in the rate of growth in November and December could be an early sign that the post-lockdown spike in activity is beginning to run out of steam.

“For the remainder of the year the stamp duty holiday will continue to support demand but the real test will be the start of 2021, when the window for offering on a property and completing before the March 31 deadline begins to close. 

“This is likely to be in the context of rising unemployment and continued lockdowns, impeding economic activity and denting consumer confidence.

“Increasing numbers of first-time buyers have been locked out of the market in recent months due to competition for homes and the withdrawal of high loan-to-value mortgages. 

“But if the government presses ahead with the launch of its proposed 95 per cent loans in spring 2021, that would help overcome the biggest barrier to home ownership for thousands of first-time buyers, boosting demand at the lower end of the market at a crucial time.”