The UK House Price Index, based on information from HM Land Registry, shows there was as 5.9% rise in prices between October and November last year which is the highest annual growth rate since June 2016.

The average house prices in the UK is now £250,000.

Focusing in on the regional picture, England saw average house prices increase over the year by 7.6% to £267,000 while in Wales they grew 7% to £180,000.

In Scotland the average property was £166,000 in November following in increase of 8.6% and Northern Ireland experienced a 2.4% increase which pushed prices up to £143,000 on average.

In London the average house price surpassed £500,000 for the first time following growth of 9.7% over the year.

Iain McKenzie, CEO of the Guild of Property Professionals, said: “The record high in average UK house prices in November underlines the astonishing level of demand triggered by the Stamp Duty holiday.

“The lure of significant tax savings took a market that was already full steam ahead due to pent-up demand and sent prices even higher.

“Our members all reported unprecedented levels of activity during the closing stages of 2020. The usual seasonal slowdown simply did not materialise.”

First-time buyer obstacles

There were concerns with prices rising so steeply there would be a detrimental impact on first-time buyers in the coming year.

Indeed, Gareth Lewis, commercial director of property lender MT Finance, was worried the steep rises were creating further challenges in this market.

“While price rises are gratifying for homeowners,” he said, “these consistent increases in values are storing up problems for the future.

“How are first-time buyers in particular going to get on the housing ladder without significant help from the Bank of Mum and Dad?

“Incomes are rising but not at anything like the pace of house prices. We welcome the demand to move and transact but there are longer-term issues that the government needs to address at some point.”