The boost to the property market since the national lockdown continues and this has meant house prices in September jumped by £17,064 year-on-year to a total of nearly £250,000.
Annual house price growth hit 7.3pc in September, according to the latest Halifax house price index.
This is the strongest pace of growth since June 2016, before the housing market slowed following the uncertainty that followed the Brexit vote.
Between August and September, values jumped by 1.6pc to hit an average of £249,870.
Values between July and September were 3.3pc higher than in the preceding three months.
Halifax’s mortgage applications have also hit a 12-year high.
In the three months to September, the lender received more applications both from first-time buyers and homemovers than anytime since 2008, the last spike before the market was hit by the financial crisis.
Russell Galley, of Halifax, said the rise of working from home combined with a new desire for space after lockdown and the added incentive of the stamp duty holiday announced in July are driving the pace of the market.
However, it is “highly unlikely” that the property market will continue to remain immune from the effects of the recession, Mr Galley said.
“The release of pent up demand and indeed the stamp duty holiday can only be temporary fillips and their impact will inevitably start to wane,” said Mr Galley.
As the furlough scheme ends this monthly and employment support is gradually scaled back, “the spectre of increased unemployment over the winter will come into sharper relief,” said Mr Galley.
Buyers should expect downward pressure on house prices in the coming months, he said.
Shaun Church, of Private Finance, a mortgage broker, said: “The market is flashing real warning signals that it is being artificially propped up by the continuous release of pent-up demand and Government stimulus measures.”
“There could be a sudden readjustment,” said Mr Church.
Guy Harrington, of Glenhawk, a lender, said: “The question now is how much longer can the housing market defy the Covid-19 gloom? Growing consensus suggests we are in for a nasty shock.”