UK house prices have increased by 10.5% over the last year to average of £224,242, according to estate agency haart’s National Housing Market Monitor.
These figures represent both the steepest annual increase recorded and the highest average house price on record so far.
However during the last 12 months the number of new properties for sale fell by 10.1% year-on-year whilst demand was up 6.4%.
Paul Smith, CEO of haart, said: "UK house prices in October rose faster on a monthly and annual basis than they have since our records began, up 1.9% and 10.5% respectively.
"The surge has resulted in the average property price peaking at £224,242. This trend is the outcome of diminished stock levels which are currently at their lowest since February, meaning there are now 12 buyers chasing every property to come to market."
And Smith called on the government to intervene to prevent prices in 2016 spiralling out of control.
He said: "The government must take drastic action to encourage the release of homes suitable for families and prevent record high price rises in 2016 for the core of the UK property market.
"The new Help to Buy ISA available from next week should help first-time buyers save for their deposit but it is stimulating demand without addressing the underlying issue of lack of supply.
"While house prices in the rest of the UK are likely to continue their current trajectory in 2016, the top end of the market, particularly in London, will see a price correction because of the impact of stamp duty - likely to consist of a 10% drop in value for homes currently priced over £1m.
"Our data is already beginning to show London falling behind the rest of the UK in terms of growth in house prices as a result of this."
