The lender’s latest house price index also revealed a 1.4% increase over the month and a 0.9% quarterly rise. It means the average UK house price has reached £258,204.

Russell Galley, managing director of Halifax, said house prices eclipsed the record high set the month before with the 8.2% increase being the highest annual growth rate it had seen in five years.

“In cash terms, almost £20,000 has been added to the value of the average home since the market had essentially come to a standstill in April 2020,” he said.

“The stamp duty holiday continues to add impetus to an extremely active market, magnifying the current shortage of available homes as buyers aim to take advantage of the government scheme.

“The influence of the stamp duty holiday will fade gradually over the coming months as it’s tapered out but low stock levels, low interest rates and continued demand is likely to continue to underpin prices in the market.”

Indeed, Galley said while he expected the recent activity levels to sustain over the short term, it is cautious about the medium-term prospects.

He added: “As we said in March, the current levels of uncertainty and potential for higher unemployment as furlough support ends leads us to believe that house price growth will slow to the end of the year.”

Andrew Montlake, managing director of the independent mortgage broker, Coreco, thought the impact of the pandemic would continue to impact the property market for a while but a ‘minor’ correction may still be looming.

“Even when the Stamp Duty holiday ends, people’s demand for something entirely different from their homes will continue to drive transaction levels for some time yet,” he said.

“These days, people want more space to work from home and a (bigger) garden in the event of future pandemics and lockdowns.

“The pandemic has changed the rules of the property game fundamentally. In the age of the pandemic, the mantra of location, location, location has become an irrelevance.

“In the short-term, the government’s mortgage guarantee scheme will continue to support demand among first-time buyers, and this will ripple up through the market and maintain a certain level of transactions.

“The concern is that people who have rushed to buy property to make the most of Stamp Duty savings could regret it if the market starts to cool down.

“We’re not expecting a material fall in prices in the short- to medium-term, as supply is so low and money cheap, but a minor correction may be on the cards.”