The average house price in the UK rose by 0.6% in October, or £1,647, according to the latest Halifax house price index.

This brings the cost of the typical home to £299,862.

The October increase is the biggest monthly rise in house prices since January. Prices grew by 1.9% in the year to October, up from 1.3% annual growth in September.

The index also shows that mortgage approvals in October were at a yearly high.

Northern Ireland is the region with the highest annual house price growth, with the price of a typical property rising 8% to £219,646.

In England, the North East saw the highest yearly house price growth rate of 4.1%, with a typical home in the region now costing £180,924.

Prices in London dropped 0.1% in October. The capital is still the most expensive UK region to buy a house, with the average property costing £542,273.

Halifax head of mortgages Amanda Bryden said: “Demand from buyers has held up well coming into autumn, despite a degree of uncertainty in the market, with the number of new mortgages being approved recently hitting its highest level so far this year.

“There is no doubt that affordability remains a challenge for many. Average fixed mortgage rates are currently around 4% and likely to ease down further, but with property prices at record levels, moving home can feel like a stretch.”

North London estate agent and former RICS residential chairman Jeremy Leaf said: “Once again, the market is baring its teeth. Although sentiment is split between upsizers who believe prospects will improve and downsizers who think it may deteriorate as a result of Budget measures, fortunately enough buyers and sellers have confidence in longer-term prospects.

“The Chancellor may have confirmed taxes will be rising but encouragement can be taken from the Bank of England’s comments that inflation has peaked and that direction of travel for interest rates is certainly downward in the coming months.”

OnTheMarket president Jason Tebb said: “The housing market continues to demonstrate its resilience, shaking off external economic concerns and holding up remarkably well even as speculation continues as to what the Budget might hold in store later this month.

“Yesterday’s hold in rates for the second consecutive month, while not delivering the further reduction borrowers would have wanted, does suggest a stability in the market which is encouraging. With the vote extremely close, and further reductions expected, this should help improve affordability, stimulate the market and encourage activity into the new year.”