Zoopla has revealed that a search for space has pushed up the average price of a house by 7.3% over the past year, reaching a new high of £230,700.

The firm added that while houses are proving popular with buyers, flats are becoming less in demand. However, Zoopla has urged that homes of all kinds are in short supply.

Zoopla said: “Demand for houses is twice as high as typically seen at this time of year between 2017 and 2019, accelerating away from demand for flats, creating a disparity in average price growth across the two property types.

“House prices are being supported in part by a severe shortage of homes for sale, with stock levels down some 25% in the first half of the year compared to 2020.”

The firm added that while house prices were increasing, the growth in flat prices was lagging at 1.4% over the past year. The price of the average UK house has jumped by 30% since 2007 when a typical house cost just £177,300.

In June, house prices were up 5.4% year-on-year, although buyer demand dipped 9% in early July because of the stamp duty holiday coming to an end. Sales agreed this year are still 22% ahead of average levels in 2020.

Alex Rose, director of new homes at Zoopla, said: “The pandemic has seen a once-in-a-generation reassessment from buyers in what they want in a home, with additional living space becoming a key priority for many.

“Our research reinforces this, with many buyers willing to move a further distance for a larger new build home than they would for a 1-3 bed home. The report, which can be downloaded for free here, also considers the effects of changing buyer behaviour, including the ‘search for space’ and how the recent changes to Help-to-Buy and regional price caps will impact the appeal of larger homes.”