Figures from the Office for National Statistics show Wales closely followed with an increase of 5.4%, while average house prices in Scotland and Northern Ireland rose by and 2.5% and 3.3% respectively.

In the UK as a whole the index showed an increase in average prices of 5.4%, down from a 5.5% increase in the 12 months to October.

Excluding London and the South East this figure is reduced to a rise of 3.1%.

This increase takes the average house price in England to £258,000 (excluding London and the South East this stands at £194,000), £167,000 in Wales, £131,000 in Northern Ireland and £184,000 in Scotland.

By region, London stood apart with the highest average house price of £441,000 while the North East came in bottom of the table with an average house price of £148,000.

Stephen Smith, director of the mortgage club and housing at Legal & General, said: “It is important to consider the overall picture when looking at house prices.

“Whilst London and the South East have been forging ahead with exponential growth prices in the rest of the country have risen at a much slower rate.”

Smith said this disproportionate growth should not be overlooked when looking at the impact of stimulus on the market.

He added: “The government does need to continue considering how to sustain the housing market without sparking a bubble in the south while simultaneously preventing other parts of the country falling too far behind.”

Average house prices increased in all nine English regions over the year to November 2013

The largest increase was again in London which rose by more than double the rate of the rest of the country with an average price rise of 11.6%, followed by the South East with a rise of 4.5% and the West Midlands where average prices increased by 4.4%.

And the indices for three out of the nine English regions were higher than at their pre-financial crisis peak in January 2008. London was 18.1% higher than its peak, the South East was 2% higher and the East of England edged above its high point by 0.1%.

Alex Gosling, director of online estate agents Housesimple, said: “Buyers are definitely showing more confidence to purchase, but there is also a little fear as well that if they don’t take the plunge now they will be left behind as a lack of supply and buyer demand drives prices higher and out of reach.

“This is certainly the case in London where properties in many areas are being snapped up within hours of being marketed.”

Meanwhile the average price for properties bought by first-time buyers increased by 6.4% to £187,000. This was up from an increase of 5.9% in October 2013.

For existing owners the average house price increased by 5.1% in the year to November 2013, down from an increase of 5.3% in October 2013 bringing the average house price for existing owners to £284,000.

Gosling added: “The overall picture for 2014 is that prices are likely to continue to rise across the UK in the early part of the year as a lack of supply and cheap mortgage finance fuels price growth.

“The hope is that prices won’t start to run away from us and that growth will be steady supported by a healthier supply of new properties coming onto the market as the year progresses.”