House prices rose by 2.2 per cent to an average of £235,298 in the year to November, the latest index from the Office for National Statistics and the Land Registry shows.

November’s increase compares to annual growth of 1.3 per cent in the year to October.

At a country level, Wales saw the strongest annual growth with prices up by 7.8 per cent to £172,574 in the year to November.

The ONS says this represents record growth and was the result of high value sales in areas like Cardiff and Newport as well as a drop in prices in the same month of 2018.

In Northern Ireland, which uses a different reporting timetable, prices rose by 4 per cent to £139,951 in the third quarter compared to the same three months of 2018.

House prices in Scotland rose by 3.5 per cent to £154,798 year on year.

England saw the weakest growth with prices up by 1.7 per cent to £251,222.

Within England, the lowest growth was in the East where prices were down by 0.7 per cent year on year to £291,281.

In London prices rose by 0.2 per cent annually to £475,458.

North London estate agent and former Royal Institution of Chartered Surveyors residential chairman Jeremy Leaf says: “Although reflecting what was happening a few months ago, these figures still provide the most comprehensive assessment of house prices nationally. 

“They confirm market resilience we have been seeing on the ground for some time, despite considerable political turmoil in the build-up to the election and Brexit uncertainty.

“Nevertheless, it is clear prices have been underpinned by a shortage of stock and insufficient house building in areas where people want to live most despite recent improvement.”

He adds: “Near record low mortgage rates and employment levels are playing their part too. 

“They are closely watched too not just for what they say about the property market but the health of the wider economy and consumer confidence.”

Andrews Property Group chief executive David Westgate says: “There is a huge amount of pent-up demand in the market and we are already seeing it start to come through. Crucially, even aspirational movers are coming back to the market, which underlines how sentiment has improved.

“Given this week’s weak GDP data and Wednesday’s fall in inflation, an interest rate cut is also now on the cards for January, which could further stimulate demand.”