If it feels like house prices are behaving completely differently depending on where you live, that’s not your imagination. The UK housing market is currently split along fairly clear regional lines, with the north continuing to see modest growth while London and the south of England see prices fall. Here’s what the latest picture looks like, broken down by region, so you can see where your area fits.
North West
Prices here are showing some of the steadiest growth in the country, with annual increases tracking between 2.4% and 3.1%. If you’re in the North West, values in your area are more likely to be moving upward than in most of the rest of England.
North East
The North East has seen values rise by around 2.8% over the past year, broadly in line with the North West and among the stronger-performing regions nationally.
Yorkshire and the Humber
Growth here is a little more modest, with prices tracking about 1.7% higher than a year ago. Still positive, but towards the lower end of what’s being seen across the north as a whole.
The North of England, Overall
Taken together, average property values across the north are up year-on-year by somewhere between 1.5% and 3.1%, depending on the specific area. The consistency here, every northern region showing some growth, even if the pace differs, points to a market that’s proven more resilient than most.
South of England
The picture flips once you head south. Average prices across the south of England are down around 1.8% annually, as higher property values in the region make buyers more exposed to the impact of higher mortgage rates.
London
London is seeing the sharpest falls anywhere in the country, with average prices down by more than 3% year-on-year, a reflection of just how sensitive the capital’s higher price points are to current borrowing costs.
Why the Split Exists
The main driver behind this divide is affordability. Northern property prices start from a lower base, so the impact of higher mortgage rates on monthly repayments is proportionally smaller. In London and the south, higher average prices mean the same rate rises translate into a much bigger hit to what buyers can afford, which is showing up directly in the price falls there.
What It Means for You
If you’re in the north, your area is likely holding its value or seeing modest gains, even against a difficult national backdrop for affordability. If you’re in London or the south, your local market may currently favour buyers over sellers, with more room to negotiate than there has been in some time. Either way, how this plays out from here will largely come down to how quickly mortgage rates ease, a shift that would be felt most keenly in the higher-priced markets currently under the most pressure.