Property values across the UK continue their upward trajectory on a year-on-year basis, according to Land Registry data. Wales, Scotland, and Northern Ireland are experiencing annual property price growth at nearly double their long-term averages since 2005, with Northern Ireland's rate approaching triple its historical norm. England, however, tells a different story.
Several factors explain England's subdued performance relative to the rest of the UK. London's market dynamics present a particular challenge, with premium properties retreating to 2014 valuations and still below 2022 peaks. The capital's flat market has remained stagnant for eight years.
Affordability constraints intensify as interest rates bite harder in England, where average prices sit 26% above Wales and 35% above Scotland. This pricing premium dampens buyer demand and constrains price appreciation.
What the major indices are reporting:
RICS
"A widening divergence is becoming evident across different parts of the UK. In particular, Northern Ireland and Scotland continue to see house prices move higher, while respondents in the North West and the North of England report prices on an upward trajectory."
Rightmove
"Market activity is difficult to compare with this time last year, as the looming stamp duty deadline at the end of March in England was still affecting overall averages last year. Some hopeful movers at this time last year were continuing to try to beat the odds by securing a new home and completing the purchase before higher taxes took effect, particularly in the more expensive south of England.
"Current trends look stronger when compared with 2024. The number of newly listed properties for sale is just below this time last year (-1%) but 11% higher than two years ago. Similarly, the number of sales agreed is 5% below this time in 2025 but is 9% higher than at this time in 2024."
Halifax
"Regional differences in house price performance have become more pronounced, with a clear divide between the northern and southern parts of the UK. In the north, positive momentum has carried over from last year, with demand and inflation remaining robust.
"Northern Ireland continues to lead the UK, with average prices rising +5.9% annually to £217,206. Scotland follows closely, recording annual growth of +5.4%, taking the average property price to £221,711. Elsewhere, Wales saw a modest rise of +0.5% over the year, with the average home now costing £228,415."
Zoopla
"House price rises are higher than last year in northern England and Scotland."
Regional market dynamics
Recent index data reveals more regions experiencing flat or negative price movements than in recent months. While Nationwide currently reports year-on-year growth across all regions, marginal gains of just 0.1% in the East and South East effectively reduce positive performers to seven of nine regions.
Data timing likely accounts for these variations, particularly around the Budget period when buyer caution temporarily affected market activity.
Despite variations between indices, clear patterns emerge that mirror the stronger performance in Scotland, Wales, and Northern Ireland compared to England:
Regions showing resilience:
– More affordable markets
– Areas with below-average national pricing
– Markets with lower mortgage exposure
Regions under pressure:
– High-value southern markets
– Areas facing acute affordability challenges
– Markets sensitive to interest rate movements
This regional divergence may persist throughout 2026, particularly in southern England. Should elevated inventory levels continue without corresponding demand growth—and if anticipated interest rate cuts fail to materialize—price stagnation could extend through the first half of the year.
Regional analysis from the indices:
Halifax
"Within England, the strongest growth remains concentrated in the north. The North West saw prices increase +2.1% to £244,328, while the North East recorded +1.2% annual growth, bringing the typical price to £181,198.
"In contrast, southern regions have seen prices soften. The South East, South West, London and Eastern England all saw annual declines of more than 1%.
"As the four most expensive areas of the country, these markets tend to be more sensitive to higher borrowing costs and taxes, which can weigh on affordability and confidence."
"Regionally, 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 that fewer than 40% of homes are cheaper to buy than rent.
"These changes benefit all buyers using a mortgage, supporting higher house price growth across northern England and Scotland. The impact is more limited across southern regions where higher stamp duty costs are an increasingly costly financial hurdle for home buyers.
"Sellers in southern England who are planning to move this year will need to price realistically to secure a speedy sale. Be sure to factor this into the offer you make on your next purchase."
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