This year also saw the traditional price divide between the north and south narrow, with nine of the top 20 performing towns for price growth located in the north west of England, Yorkshire and the Humber and Scotland, according to Halifax.
The average house prices in Newark, in the East Midlands, and Rochdale, in Greater Manchester, increased by 20pc and 18.5pc respectively. Rochdale was the highest performing northern town for property price growth, with average values rising from £173,975 to £206,098.
Homeowners in the market town of Chippenham, located 13 miles outside of Bath, enjoyed the biggest cash gains this year. Buyers in this area paid £58,322 more for the average property in October, compared with the same month in 2020.
The housing market in London has lagged behind the rest of the country since the pandemic hit, with tens of thousands of its residents fleeing the capital in search of greener pastures.
Russell Galley, of Halifax, said: “It is rare that no London boroughs appear amongst the areas of highest house price growth, but that is the case in 2021.
“This shift echoes what we have seen over the last year – less focus on major cities and more demand in the suburbs and further afield,” he added.
The London boroughs of Westminster, Hammersmith and Fulham and Islington recorded some of the biggest property price drops in the country, with falls of 6.9pc, 3.3pc and 1.6pc respectively.