The UK's property market has taken on a distinctly regional flavour, with affordable areas bucking the trend in sluggish growth. Latest figures from e.surv show that the average UK house price stands at £328,800, up 1.8% annually – a modest increase masked by significant disparities across different regions.
Yorkshire and the Humber is leading the charge, with property prices rising by 4.1% to an average of £238,300 over the past year. The North West follows closely with a 3.8% hike, taking its average price to £250,300. Other strong performers include the West Midlands (3.5%), Wales (3.3%), and the North East (3.2%) – all regions where house prices remain below the national average.
Meanwhile, London remains an outlier, with a 3.4% drop in property values to £589,500. Growth is also slowing across southern England, with prices increasing by just 1.6% in the South West, 1% in the East of England, and 0.4% in the South East – where the average property price stands at £417,100.
Experts predict that house price growth will remain modest for the rest of 2026, with lower-priced regions continuing to outperform more expensive areas like London and the South East. The report also highlights the significant disparity between rising purchasing costs and stagnant property prices – average home costs have surged by approximately 78% since before the pandemic, while house prices are up around 24%.
Mortgage approvals are showing signs of recovery after a tumultuous few years, but only just – they were about 6% below June 2019 levels in May. Any future policy changes or signals ahead of the Autumn Budget could have significant implications for housing policy and areas like council housebuilding, council tax, and stamp duty.