House prices in St Albans surged by 24 per cent last year, and stand at 18 times the national average salary.

Nationwide has released statistics on the housing market, which show that prices had increased 10.6 per cent in England for the year to December 2013, with St Albans outperforming London and Reading.

The average house price in London is now £446,455, which is a 16 per cent increase from the previous year.

A recent house price index survey by the building society for the three months to December 2014 revealed the average price of a house in the district was £494,777 – up from £474,497 in the previous quarter.

Changes to stamp duty could put more money in buyer's pockets and lift the market, Nationwide said.

However, this will also hit those buying the most expensive homes and estate agents already report that the move is pulling down prices at the top of the market.

The much-criticised 'slab' structure of stamp duty was completely overhauled in the Autumn Statement and replaced with a graduated version of the tax.

Percentage levels charged of the tax now step up like income tax above certain thresholds, rather than seeing the percentage levied on the entire purchase price.

Nationwide’s chief economist Robert Gardner said the greatest impact is likely to be for home owners looking to buy property just above £250,000, who could save around £5,000 in tax.

Manchester was the worst performing city for house prices, with no price growth. Average house prices in the city registered a 0 per cent increase over the last year, languishing at around £210,685.

Providing an outlook for 2015, Mr Gardner added: “While the pace of house price growth has moderated in recent months, activity has slowed more sharply, with the number of mortgages approved for house purchase falling to their lowest level for 16 months in October (and 22 per cent below the level prevailing at the start of the year).

“The slowdown in housing market activity is surprising given further steady gains in employment, a pick-up in wage growth (albeit from low levels) and the continued low level of mortgage rates.

“Moreover, surveys suggest consumers remain in high spirits – a view reinforced by robust retail spending growth in November, which was at its highest for over a decade.

“If the economic backdrop continues to improve as we and most forecasters expect, activity in the housing market is likely to regain momentum in the months ahead.”