House prices in the three months to October were 0.2% higher than in the preceding three month period.

On a monthly basis, house prices rose marginally by 0.7% in October, following two monthly falls in a row.

The average house price in the UK now stands at £227,869.

Managing director of Halifax, Russell Galley, said: “House prices continue to be supported by the fact that the supply of new homes and existing properties available for sale remains low.

“Further house price support comes from an already high and improving employment rate and historically low mortgage rates which are creating higher rates of relative affordability.”

Extending stamp duty exemption to people wanting to downsize

Kevin Roberts, director of Legal and General Mortgage Club, said that more sustainable house price growth, an extension of Help to Buy and a stamp duty exemption for shared ownership properties puts young people in a much stronger position to buy their first home.

He said: “The changes in the Budget were certainly welcome, but if we want to create a housing market that is accessible and fair to all, we need to see more support for downsizers and families too.

“That means extending the stamp duty exemption to people wanting to downsize and delivering on thousands of new, affordable homes, including properties suitable for older people that our country desperately needs.”