According to its latest UK House Price Index, which is calculated using data from the Land Registry, this is the highest annual growth rate the UK has seen since 2016.

It compares to a 4.3% annual rise in September and demonstrates the strength of the market at a time when the stamp duty holiday had got into full swing.

The ONS also revealed average house prices in England increased over the year to £262,000 – a 5.4% rise. In Wales prices went up by 5.8% to £176,000, in Scotland by 6% to £163,000 and in Northern Ireland they rose by 2.4% to £143,000.

The East Midlands, North West and Yorkshire and the Humber experienced the joint highest annual growth in prices – here values soared by 6.6% over the year to October.

The data is calculated based on completed housing transactions and therefore offers a strong indication of the impact of the stamp duty holiday – which was introduced in July – has had on prices.

As such, many estate agents felt the data did not reflect how the market was progressing in more recent times.

Economic impact

David Westgate, group chief executive at Andrews Property Group, said: “The rising price inflation in the property market during October is in stark contrast to the sharp fall in prices on the high street during November, as the economic impact of the pandemic really started to bite.

“For now, house prices are being driven upwards by the stamp duty holiday but rising unemployment and the small matter of a potentially messy No-Deal Brexit will almost certainly see average values cool off during 2021.

“Rising redundancies and reduced mortgage availability at higher loan to values will invariably hit demand but the feel-good factor generated by a working vaccine, coupled with the continued lack of supply, could prevent the steep drop in prices some are expecting.”

Delays

Offering a perspective from the mortgage industry, Kevin Roberts, director, Legal & General Mortgage Club, was more concerned about delays from transactions still going through the system.

“The UK housing market continues to show its strength,” he said.

“The stamp duty holiday continues to play an active role in driving the housing sector into growth after the restrictions from April and May.

“However, the market is experiencing pent-up demand which is causing delays in the homebuying journey.

“On average, our research showed that it could take buyers up to 17 weeks to complete their transaction. It’s important that prospective buyers speak to an adviser to help them navigate the changes and access the most up-to-date guidance and support.”