The Halifax has reported that house prices in the three months to October were 2.8% higher than in the previous three months.

This compares to the average of 2.5% on this measure over the first nine months of the year. The annual rate increased from 8.6% in September to 9.7%.

Martin Ellis, Halifax’s housing economist, said: ““Improving economic conditions and household finances, together with sustained low mortgage rates, have boosted housing demand during 2015. Strengthening demand is filtering through in to higher sales levels although the ongoing shortage of supply is acting as a significant constraint on activity.

“The imbalance between supply and demand is likely to persist over the coming months, maintaining upward pressure on house prices.””