Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Zoopla: Consistent House Price Growth Now Rare Across UK Regions
Only 14% of UK homes have increased in value every year over the past five years, according to new analysis from Zoopla. The findings highlight how higher borrowing costs have reshaped the UK housing market, with house price inflation no longer guaranteed.
Zoopla’s house price index shows the average UK property has risen by 15.3% in value over the five-year period, equivalent to £36,100 per home. The analysis covers a period marked by a sharp shift in borrowing costs, moving from ultra-low mortgage rates at the end of 2021 to rates of around 4-5% in 2026. Mortgage rates are now two to three times higher than five years ago, impacting buyers and property values, especially in higher-priced markets.
Regional Differences in House Price Growth
The impact of higher borrowing costs has been uneven across the UK. Northern Ireland recorded the highest proportion of homes that increased in value every year, at 37.9% (300,400 homes), more than double the UK average. The North West followed with 29.7% of homes (1,006,800 properties) rising consistently—the largest number of any UK region.
In contrast, southern regions lagged behind. The East of England had the lowest share of homes rising in value every year, at 2.6% (72,600 homes). The South East, South West, and London also recorded below-average figures, with London showing 4.6% (178,000 homes) and the highest share of homes falling in value every year at 0.8%.
The gap between the strongest and weakest regions is significant, with a 35.3 percentage point difference between Northern Ireland and the East of England. However, the range in homes falling in value every year is much narrower, from 0.8% in London to 0% in Northern Ireland.
Local Factors and Transport Infrastructure
Zoopla’s analysis also points to localised hotspots where specific factors support consistent price growth. In London, Dagenham was highlighted as the last affordable family home market, with values around 25% below the London average, supported by transport improvements such as the Elizabeth Line and Overground extension. Bicester saw 28% of homes with consistent gains, aided by the East West Rail’s Oxford-Cambridge link and increased housing supply. Bonnybridge led the UK with 60.8% of homes rising consistently, helped by short commutes to nearby cities. In contrast, Witham managed just 13.3%, despite good transport links, due to higher property values.
These findings underline the importance for letting agents and inventory clerks to consider local market conditions and affordability, as national or regional averages may not reflect trends at a more granular level.
Source: Mortgage Solutions