The annual house price growth spurt that had become a UK norm is officially over, according to a damning analysis from property portal Zoopla. In fact, just 14% of homes – around 4.2 million out of 30 million properties – have recorded consecutive annual rises in value between June 2021 and June 2026.
Despite this trend-busting finding, the average UK property still managed a substantial gain of 15.3% over the five-year period, boosting its value by £36,100 on average. However, regional disparities have become increasingly stark, with economic conditions such as rising mortgage rates wreaking havoc on affordability and market dynamics.
Richard Donnell, Zoopla's executive director, points out that local housing markets are adapting to the shift from ultra-low to higher borrowing costs in vastly different ways. While regions like Northern Ireland, the North of England, and Scotland have continued to build equity, areas with already high property values, such as southern England, are struggling to cope with increased mortgage expenses.
The North West is a notable exception, with 30% of its homes enjoying uninterrupted annual growth between June 2021 and June 2026. Yorkshire and the Humber also demonstrated resilience, with 22% of properties achieving consistent yearly increases. In stark contrast, fewer than one in 20 homes across southern England recorded consistent price rises.
Some areas have bucked the trend, however – Bonnybridge in Scotland, for instance, has seen a staggering 60.8% of its homes rise in value annually, while Dagenham in London has benefited from relative affordability and improved transport links like the Elizabeth line.
The flipside is equally telling: only 0.2% of UK homes – around 56,000 properties – have experienced annual declines in value over the five-year period. Aberdeen stands out as one of the few areas with a notable concentration of falling values, with 5.9% of homes declining annually – a trend linked to the ongoing transition in the North Sea oil and gas industry.