Average house prices across the UK increased by 2.9 per cent to £235,673 in the year to May, according to the latest figures from the Office for National Statistics and Land Registry.

The index is based on completed transactions and therefore today’s figures are likely to reflect sales agreed before the lockdown began.

They come as Nationwide’s August index recorded a year-on-year jump of 3.7 per cent.

The ONS findings reveal that prices in England increased by 2.9 per cent to £252,000, in Wales they jumped by 4.8 per cent to £169,000, in Northern Ireland they rose 3.8 per cent to  £141,000 and in Scotland they climbed 2.1 per cent to £155,000.

On a monthly basis, UK house prices were up by 0.3 per cent in May.

Yorkshire and The Humber was the English region with the highest annual house price growth, with prices increasing by 4.9 per cent to £170,000 in the year to May.

The lowest annual growth was in the East of England, where prices increased by 0.7 per cent.

London’s average house price increased by 3.3 per cent over the year to £479,018.

MT Finance director Tomer Aboody says: “Back in May, where transactions reflected deals made before lockdown took hold, the housing market was on an upwards trajectory with transactional volumes increasing. 

“These figures prove that buyers were definitely there, waiting in the wings to purchase. 

“Values were increasing year-on-year due to lack of supply, with buyers having to pay more to secure a property.

“Northern regions have performed best overall with the biggest increase in values. 

“This shows that people are considering moving out of the cities to greener pastures with good travel connections to the rest of the country.

“The pandemic is only serving to enhance this trend with people realising they can work from home and don’t have to live in the big urban centres.”

North London estate agent and former Royal Institution of Chartered Surveyors residential chairman Jeremy Leaf says: “The UK HPI always commands attention, not least because it provides the most comprehensive snapshot of the UK property market albeit a little historic. 

“Nevertheless, the figures underline the resilience of the property market and a determination of buyers to complete transactions at previously agreed prices from before lockdown, bearing in mind the inevitable lag between the time the sale is agreed and completion, which is shown here.

“We are seeing that same determination now as buyers continue to press on with moves irrespective of the potential economic storm clouds gathering, encouraged by the stamp duty holiday and low interest rates. 

“If anything, momentum is being restrained by lack of lender capacity to deal with the recent upsurge in interest.”