Annual house price inflation edged down to 1.9% in the year to January, according to the latest Zoopla House Price Index.

The latest figure from the property portal was down from 2% in the 12 months to December.

Zoopla stated that the sales market is continuing to register “positive momentum”, with all key measures of market activity running 10-11% higher than a year ago. The number of sales agreed are 10% higher, while 11% more homes are for sale than a year ago, meaning there are currently more buyers in the market.

The group added that increased levels of housing market activity also mirrors other measures of economic activity, including robust earnings growth, higher retail sales and signs that consumer confidence is on the rise.

Executive director – research at Zoopla, Richard Donnell, said: “The housing market is resilient, supported by faster growth in average earnings. There are the most homes for sale in seven years, which will keep price inflation in check.”

Zoopla also said that the moderation in house price inflation could reflect buyers starting to factor in higher stamp duty, with the Government’s changes to the tax due to come in from April.

According to separate Zoopla research, half of homeowners will have to pay an extra £2,500 per purchase from April, while another third will pay up to this level. Two fifths of first-time buyers also will pay more stamp duty from April, up from 20% today.

Commenting on the Zoopla data, head of business development at Saffron for Intermediaries, Tony Hall, added: “First-time buyers are racing to complete purchases before the stamp duty changes in April, and today’s figures really hammer that home. But even with an 11% rise in homes on the market, there remains a strain on supply of new housing.

“It’s clear the Government is serious about the supply issue – they set out their stall last summer with the 1.5 million homes target. But it’s not just about building more homes. If we’re going to solve the supply issue, we need to think beyond traditional new builds and explore alternative routes to homeownership as well.”

---