House prices in October were 7.5% higher than in the same month a year ago, according to data from the latest Halifax House Price Index.

The analysis showed this is the strongest annual growth since June 2016.

On a monthly basis, October house prices were 0.3% higher than in September, while over the latest quarter – August to October – prices were 4.0% higher than in the preceding three months, between May and July.

Halifax highlighted that average UK house prices have topped a quarter of a million pounds (£250,457) for the first time in history.

“This level of price inflation is underpinned by unusually high levels of demand, said Halifax managing director, Russell Galley. “Latest industry figures show home-buyer mortgage approvals at their highest level since 2007, as transaction levels continue to be supercharged by pent-up demand as a result of the spring and summer lockdown, as well as the Chancellor’s waiver on stamp duty for properties up to £500,000.

“While government support measures have undoubtedly helped to delay the expected downturn in the housing market, they will not continue indefinitely and as we move through autumn and into winter, the macroeconomic landscape in the UK remains highly uncertain.

“Though the renewed lockdown is set to be less restrictive than earlier this year, it bears out that the country’s struggle with COVID-19 is far from over. With a number of clear headwinds facing the housing market, we expect to see greater downward pressure on house prices as we move into 2021.”

Commenting on the latest Halifax data, Trussle head of mortgages, Miles Robinson, added that a “race against the clock” from buyers attempting to meet the stamp holiday deadline was the driving force behind rising property prices last month.

“However, it’s possible that those beginning their home ownership journey in October could still miss out on the tax break,” Robinson added.

“A surge in demand has created a bottleneck of transactions and it’s likely that around half of sales agreed after 22 October won’t be completed in time to make the stamp duty holiday deadline.

“We’d encourage the government to consider granting the stamp duty holiday to anyone who has exchanged on a property by 31 March 2021. We believe this is the fairest way to support buyers during these unprecedented times.”

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