Data from the Office for National Statistics revealed this was up from the 10.2 per cent annual rise seen in August, as the final phase of the stamp duty holiday ended.
On a monthly basis, house prices rose 2.5 per cent.
Emma Cox, sales director at Shawbrook Bank, said house prices continued to be “underpinned by a chronic lack of supply which shows no sign of abating”.
However, she said the prospect of an increasing base rate could result in a slowdown in demand, particularly at the lower end of the market.
Although the Bank of England decided not to change the base rate to curb rising inflation at this month’s meeting, news today that the measure rose to 4.2 per cent has put added pressure on the central bank to react.
Industry figures said this was unlikely to significantly affect prices as long as supply remained constrained.
Tomer Aboody, director of MT Finance, said: “Buyers fighting over bigger homes, with prices of houses rising more than flats, combined with the cheapest-ever mortgage rates, has created an extremely competitive environment.
“Property values will continue to increase, even with potential interest rate rises, if buyers’ options remain limited.”
Kimberley Gates, head of corporate partnerships at Sirius Property Finance, added: “To date, the Bank of England [has] refrained from an increase in the base rate of interest and while this may materialise in a month’s time, the likelihood is that interest rates will remain close to historic lows for the majority of 2022, if not longer.
“This means that while the cost of borrowing may start to climb marginally and slow the huge rates of house price growth seen in recent months, it’s unlikely to spook the market and deter homebuyers from transacting altogether.”
The ONS figures showed that within England, house price growth was the strongest in the North West with a 16.8 per cent annual jump to £203,661. London recorded the lowest annual change at 2.8 per cent to £507,253.
Mark Harris, chief executive of SPF Private Clients, added: “Lack of stock continues to inflate house prices, although in a less frenetic way perhaps, as buyers search for more space, both inside and out, in less urban locations.”
At a country level, Wales saw the biggest increase of 15.4 per cent, followed by Scotland at 12.3 per cent. England saw annual growth of 11.5 per cent while Northern Ireland recorded a 10.7 per cent rise.