Swindon-based Nationwide Building Society will lower the minimum deposit it requires from first-time buyers to 10 per cent from July 20. The UK's largest building society had restricted its mortgages in June in response to the coronavirus crisis.

But Henry Jordan, director of mortgages, said: "We feel it is the right time to enhance our lending". It follows the government's announcement of a temporary stamp duty holiday for people in England and Northern Ireland.

Homebuyers will pay no stamp duty on the first £500,000 of their purchase under the tax break, which will last until March 31.