Sterling surged to a fresh 26-year high above $2.07 against the dollar on Wednesday after a survey showed UK house price growth in October equalled the fastest rate this year.

The pound rose 0.3 per cent to $2.0743 against the dollar, its strongest level since 1981, rose 0.1 per cent to £0.6970 against the euro and climbed 0.6 per cent to Y238.50 against the yen.