Annual house price growth reached 5 per cent in September, up from 3.7 per cent in August and marking the highest year-on-year increase for four years.

Average prices across the UK climbed to £226,129, although month-on-month growth of 0.9 per cent was below the 2 per cent monthly increase recorded in August.

Nationwide chief economist Robert Gardner says: “Housing market activity has recovered strongly in recent months. 

“Mortgage approvals for house purchase rose from around 66,000 in July to almost 85,000 in August – the highest since 2007, well above the monthly average of 66,000 prevailing in 2019.

“The rebound reflects a number of factors. 

“Pent-up demand is coming through, with decisions taken to move before lockdown now progressing. 

“The stamp duty holiday is adding to momentum by bringing purchases forward. 

“Behavioural shifts may also be boosting activity as people reassess their housing needs and preferences as a result of life in lockdown.”

Trussle head of mortgages Miles Robinson says: “The latest figures from Nationwide continue to show that the UK housing market is currently experiencing a ‘mini-boom’. 

“However, it still remains a challenging time for first-time buyers who are continuing to face increased scrutiny from lenders, tighter criteria and a shrinking range of high loan-to-value products. 

He adds: “92 per cent of deals have been pulled from the market since March this year, and as of this week, there are only 74 mortgage deals available for mortgage applicants with a LTV over 90 per cent. 

“By comparison, this time last year there were over 2,000. 

“To put this into context, from September 2019 to September 2020 the number of 90 per cent or higher LTV mortgage products has decreased by 79 per cent.”

Good Move director and chartered surveyor Ross Counsell says: “While the latest statistics are positive, the medium-term outlook for the UK housing market remains uncertain. 

“With rising unemployment figures and the end of the furlough scheme on the horizon, the future of the property market will depend solely on how the wider economy performs. 

“This will undoubtedly affect first-time buyers as lenders take a more cautious approach to who they lend to and tighten their criteria for granting a mortgage, for example, requiring larger deposits and secure employment. “First-time buyers also have the competition of existing homeowners looking to move on their hands too.

“We hope to see further policies put in place to protect first-time buyers as well as businesses, jobs, and incomes to help limit long-term damage to the economy. 

“This in turn will help protect the housing market.”