Property prices across the UK nations have continued to rise year-on-year, according to Land Registry data, though England’s growth lags behind Scotland, Wales and Northern Ireland. All nations except England are recording annual price increases at nearly double their average rates since 2005, with Northern Ireland experiencing growth almost three times higher than its historical average.
England’s slower growth is attributed to several factors, with London acting as a significant constraint on national averages. Premium property prices in the capital have retreated to 2014 levels and remain below 2022 peaks, while flat prices match those from eight years ago.
Affordability pressures are more acute in England, where average prices stand 26% higher than Wales and 35% above Scotland. Combined with elevated interest rates, this pricing differential has restricted demand and constrained price growth.
Regional performance divergence
The latest indices reveal an increasing number of regions experiencing price falls or stagnation. Nationwide is currently the only lender reporting year-on-year growth across all regions, though the East and South East recorded minimal rises of just 0.1%.
According to Halifax, Northern Ireland leads UK growth with annual price increases of 5.9% to £217,206, followed by Scotland at 5.4% growth to £221,711. Wales recorded a modest 0.5% rise, with average prices reaching £228,415.
Within England, the North West saw prices increase 2.1% to £244,328, while the North East recorded 1.2% annual growth to £181,198. In contrast, the South East, South West, London and Eastern England all experienced annual declines exceeding 1%.
Halifax noted that the four most expensive areas of the country tend to be more sensitive to higher borrowing costs and taxes, which impact affordability and buyer confidence.
Market activity patterns
RICS reported that Northern Ireland and Scotland continue to see house prices move higher, while respondents in the North West and North of England report prices on an upward trajectory.
Rightmove data shows newly listed properties for sale are 1% below last year but 11% higher than two years ago. Sales agreed are 5% below this time in 2025 but 9% higher than at this time in 2024.
Zoopla analysis indicates that more than half of homes for sale are cheaper to buy than rent in the North East and Scotland, followed by the North West. In contrast, higher house prices in London and the Midlands mean fewer than 40% of homes are cheaper to buy than rent.
Affordability and market outlook
The data suggests a clear pattern: more affordable regions with average prices below the national average and less exposure to high mortgage borrowing are performing more strongly. Higher-value southern regions face greater affordability pressures and remain sensitive to interest rate expectations.
Zoopla noted that these changes benefit all buyers using a mortgage, supporting higher house price growth across northern England and Scotland, while the impact remains limited across southern regions where stamp duty costs present an increasingly costly hurdle for home buyers.
Industry analysts suggest this regional price stagnation could persist, particularly in the South, if higher stock levels continue throughout the year without a matching uplift in demand. If interest rates do not reduce as anticipated, price growth in many areas may remain subdued for at least the first half of the year.
The timing differences in data collection, particularly around the Budget period, may account for some variation between indices, as buyer caution was evident during that time.
