House prices jumped by 5.4 per cent to £245,443 in the year to October, reaching the highest annual growth rate in four years, according to the Office for National Statistics.

Month-on-month growth was 0.7 per cent, compared to a fall of 0.3 per cent between September and October last year.

Scotland saw the strongest growth of all the countries in the UK, with average prices up 6 per cent to £163,000. 

In Wales prices increased by 5.8 per cent to £176,000, while in England they rose by 5.4 per cent to £262,000.

But within England, Yorkshire and the Humber, the North West and the East Midlands each posted sharp growth of 6.6 per cent.

In Northern Ireland prices were up by 2.4 per cent to £143,000.

London average property prices increased by 3.9 per cent to £490,936 over the year, but from September to October they actually dipped by 1.2 per cent.

MT Finance director Joshua Elash says: “At a time when a Brexit deal has yet to be thrashed out, and the furlough scheme continues to disguise unemployment figures, the disconnect between the performance of the property market and the underlying economy is astounding. 

“It’s not a question of if these gains are reversed next year, simply a question of by how much.”

But north London estate agent and former Royal Institution of Chartered Surveyors residential chairman Jeremy Leaf does not foresee a crash.

He says: “These most comprehensive of all the housing market figures confirm what others have been saying, not least because they are a little dated, reflecting activity from a few months ago. 

“At that time, prices were rising quite strongly but beginning to slow in response to fears over further lockdown restrictions, which proved accurate. 

“Since then, new buyer enquiries have fallen but the determination to take advantage of the stamp duty holiday has not. 

“Looking forward, there does not seem to be any sign of a huge correction although inevitably disappointing economic news is bound to have some bearing as 2021 develops.”