Flat house prices reported in June by Halifax, leaving uncertainty about property values for the remainder of 2025.
In the ever-evolving UK property market, regional disparities are becoming increasingly apparent. According to recent data, the North East and Wales are currently experiencing the highest house price growth, while the South West of England is seeing the lowest.
The North East has shown the highest annual house price inflation of 6.4% in the 12 months to April 2025, positioning it as the region with the most significant growth. On the other hand, the South West has the lowest annual growth rate of 0.9%, making it the slowest-growing region in England.
Wales is also among the regions with high house price growth, although it falls slightly behind the North East. These trends are expected to continue over a forecasted five-year period from 2024 to 2028, with the North East and Wales predicted to see the greatest overall price increases.
London, while showing moderate growth with a 3.3% annual increase, has experienced the highest monthly increase in April 2025. Conversely, the property market in the South West and London is particularly slow, according to Halifax.
The North West has seen the highest house price growth, up 4.4% over the last year, and the typical home in Northern Ireland now costs £212,189, reflecting a 9.6% increase over the past year. Meanwhile, prices in Scotland are up 4.9% with average prices now at £214,891. Prices in Wales were up 3.9% to an average of £229,622.
Jeremy Leaf, a north London estate agent, suggests that any house price momentum from lower interest rates may be countered by fear of further tax rises in the autumn. This sentiment is echoed by Tom Bill, head of residential research at Knight Frank, who warns that asking prices need to reflect the current buyer's market.
The glut of supply in some areas has led some estate agents to refuse to list homes where they feel the owner is asking for an unrealistic price. In many areas in the South of England, the number of homes coming onto the market exceeds the number of potential buyers.
Despite the recent fall, the average house price in the UK is still 2.5% higher than this time last year, standing at £296,782 last month. This regional disparity in the UK property market is expected to persist in the coming years, offering both opportunities and challenges for buyers and sellers alike.
[1] Halifax House Price Index - May 2023 [2] Nationwide House Price Index - May 2023 [4] Rightmove House Price Index - April 2025
- Investing in the North East and Wales' real-estate market seems promising, as these regions are predicted to see the greatest overall price increases in the UK housing-market over the next five years.
- Amidst regional disparities in the UK property market, some regions like the South West and London are experiencing slow growth, while the North West and Northern Ireland have seen significant house price growth.
- Personal-finance strategists advise potential buyers to carefully consider the current housing-market trends, such as the glut of supply in some areas, and adjust their investment plans accordingly, as the UK property market is expected to continue to display regional disparities in the coming years.
