This is the sixth month in a row of annual increases after eight months of falls, reports estimates from the Office for National Statistics.

Typical home prices in England increased 2.3% to £310,000, up from 1.3% the previous month.

In Wales, prices rose 3.5% to £223,000, up from 1.5%, and in Scotland they lifted 5.4% to £200,000, up from 5%, over the same period.

The average house price for Northern Ireland rose 6.4% to £185,000 in the second quarter of the year from 12 months ago.

The data comes as inflation fell to its lowest level for three years to 1.7%, according to ONS data, heightening market expectations of a November base rate cut from the Bank of England.

Atom bank head of mortgages Richard Harrison says: “House prices have been pushed higher once more, off the back of a much more active housing market.

“Data from Rightmove shows that the number of agreed sales is up by 25% on this point last year, with plenty of buyers who may have put their plans on ice deciding to pull the trigger.

“Sellers are more confident too, with the number of new sellers up by 14% on last year, while estate agents have the highest stock levels since 2014.

“That’s a recipe for a much busier market in the final few months of the year, and most likely further house price growth.”

Legal & General Surveying Services risk director Malcolm Webb adds: “These latest house price figures show the housing market is holding strong as we gear up for the final stretch of 2024.

“Mortgage rates remain more competitive than just a few months ago and innovative products – some offering up to six times your income – are keeping borrowers engaged.

“Buyer demand is up by 26% compared to this time last year and the latest Legal & General Ignite data shows that broker searches for first-time buyers rose by 9.1% in September.

“Plus, activity in the final quarter of the year will be further boosted by thousands of borrowers looking to remortgage.”

Hargreaves Lansdown head of personal finance Sarah Coles points out: “Property prices inched up again in the year to August. These are completions on sales that were agreed a few months earlier.

“Back in April and May, according to Moneyfacts, the average two-year fixed rate mortgage dipped slightly, but only to around 5.8%, before bouncing back to 5.9%.

“It meant people were still being priced out of property purchases.

“Right now, things are looking more positive. The Bank of England rate cut, and expectations of more to come, mean the average two-year fixed rate mortgage has fallen 5.37% and the Royal Institution of Chartered Surveyors figures show a renewed enthusiasm among buyers.

“However, this is going to take months to filter through into the official figures.”