The UK's property market has undergone a significant transformation over the past five years, with only 14% of homes experiencing consistent price growth year-on-year. This marked departure from historical trends is largely attributed to the impact of higher mortgage costs, which have significantly affected affordability for many buyers.
According to new analysis by property portal Zoopla, out of approximately 30 million homes nationally, just 4.2 million registered annual value increases between June 2021 and June 2026. Regional variations play a crucial role in this disparity, with northern regions demonstrating greater resilience in maintaining steady value increases.
Yorkshire and the Humber led the way in northern England, where 22% of properties showed uninterrupted value appreciation. Meanwhile, southern England has proven more sensitive to higher mortgage rates, with fewer than one in 20 homes achieving consistent yearly increases. Existing homeowners in these regions may face slower equity growth, while first-time buyers continue to struggle with affordability.
Local markets within these regions have also shown notable variations. Dagenham stood out in London with 31.6% of properties recording annual increases, but just 0.2% of British homes experienced persistent annual declines over the five-year period. Aberdeen recorded the highest proportion of consistent value decreases, with 5.9% of properties falling in value annually due to structural changes in the North Sea oil and gas sector.
Richard Donnell, Executive Director at Zoopla, noted that local housing markets have adjusted differently to the transition from record-low borrowing costs to today's higher rates. He highlighted that national and regional averages offer limited guidance for individual property valuations, underscoring the importance of granular market data in assessing potential returns and purchasing capacity.