Fears that the property market could slump after the New Year have been allayed by Zoopla, whose data shows a 49% increase in demand for homes compared to the past four years.

This means demand over the past month has been comparable to the jump seen following the stamp duty holiday.

More promisingly, the portal says the drought in supply seen by almost every estate agent in the UK has turned a corner and, although still 44% down compared to the five-year average, vendors appear to be stirring from their post-Covid slumber.

This could be spurred on some buyers who are keen to lock in a home loan before interest rates start to rise – amidst expectation that the Bank of England will increase the base rate further in 2022.

Upward trajectory

The increase in demand includes a ‘sharp upward trajectory’ from those seeking to buy apartments, which were once of the sectors hardest hit by the pandemic ‘flight to the country’.

But Zoopla also says demand for family houses outside London is four times higher than the five-year average

Consequently, the average house price in the UK is now £242,000, up from £216,500 at the start of 2020.

Grainne Gilmore (pictured), Head of Research at Zoopla, says: “The effects of the pandemic on the housing market cannot be underestimated.

“Even after nearly two years, the pandemic-led ‘search for space’ is one of the factors creating record demand for homes this month.

“The market is also being boosted by office-based workers re-thinking where and how they are living amid more hybrid working models.

“But in some cases, as offices re-open, some demand is flowing back into city centres.”