Average house prices have climbed about £20,000 in the last year, the Halifax says, as the buying frenzy prompted by the stamp duty holiday continues.
Prices are up 8.2% in the last 12 months, the highest annual growth rate for five years, it said.
Altura mortgage broker Rob Gill said "fear of missing out" (FOMO) was driving the surge.
Announced by Housing Secretary Robert Jenrick over the weekend, a major action plan, including over £150 million funding to help more people build their own homes, has been launched by the government.
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