House prices increased by 0.7% in England and Wales during September, according to the latest e.surv Chartered Surveyors House Price Index.

The data revealed that this was an average annual increase of 3.4%, to take the average house price in England and Wales to £311,624.

e.surv’s index, formerly the LSL Acadata House Price Index, provides the “average of all prices paid for domestic properties”, including those made with cash.

e.surv suggested that the stamp duty holiday was keeping the market active during September, and that Greater London was the region with the highest monthly growth, at 2.6%.

“The temporary pause on the tax has kept activity in the market at a high level, following the release of pent-up demand from earlier in the year,” said e.surv director, Richard Sexton.

“This strong market activity is likely a contributing factor behind the continued house price rises sweeping England and Wales. On average, house prices have risen 3.4% since June, which was the last full month before the introduction of the measure. 

“An additional factor driving growth has been the growing popularity of larger properties, as many in the UK come to terms with the prospect that they may continue working from home for a much longer period than was first expected.”

Sexton also suggested that despite the current “healthy” appearance of the market, there is “cause for concern” around access to housing for first-time buyers.

“With lenders becoming more cautious, the higher LTV products which new buyers frequently rely upon to get onto the property ladder have become fewer and further between,” he said.

“The Prime Minister’s recent conference commitment to increase the supply of 95% mortgages to ‘generation rent’ is an interesting proposition but requires more detail before any meaningful analysis of likely impacts can be undertaken.”

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