Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
North-South Divide in UK Property Prices Persists, Reports Show
Recent analysis from The Negotiator highlights a continued divide in property price trends between the North and South of the UK. Since the rise in interest and mortgage rates in 2022, average property prices in the North have increased, while the South has seen prices remain below 2022 levels.
According to the report, regions such as the South, East, and London—all with average prices above £250,000—are still below the price levels reached before the 2022 rate increases. In contrast, the North has experienced consistent price growth. The report notes that the South is struggling to recover, with more stock expected to come onto the market towards the end of 2025 and into early 2026.
The supply and demand imbalance currently favours buyers, with a large amount of stock available in most markets. This is expected to keep the market moving over the next quarter, with property prices remaining soft in the South and continuing to grow modestly in the North.
A chart from Home.co.uk referenced in the report shows that, in real terms, property prices compared to five years ago are considered good value for money, as they have not kept up with inflation. Wages have also increased over the last few years, improving affordability.
Home.co.uk commentary states that Scotland and Wales have performed best over the last five years, but these markets have recently cooled, with price growth falling below inflation. The report also notes that buy-to-let investment, previously a key driver of growth in these regions, is now less attractive due to declining yields, falling rents, new Renters’ Rights legislation from 1st May, and higher mortgage interest rates.
Halifax commentary included in the report confirms significant regional differences in house price performance. The North East saw prices rise by 3.5% over the year to £181,838, and the North West recorded 2.9% annual growth to £246,292. In contrast, the South East saw prices fall by 2.2% year-on-year to £383,834, and London’s average values dropped by 1.0% to £538,200.
These trends are relevant for letting agents and inventory clerks monitoring regional market conditions, stock levels, and rental yields across the UK.
Source: The Negotiator