Homes in the North of England have experienced some of the strongest price growth over the past year, outpacing many other regions in the UK. According to the latest UK House Price Index for August 2025, properties in the North East saw a significant 6.6% annual price rise, bringing the average home value there to £163,534. Similarly, the North West recorded a 4.5% increase, with average prices reaching £216,789. These increases contrast with London's housing market, where prices have dipped slightly by 0.3%, leaving the average property price at £565,567, still the highest in the UK.

While the North outshone other areas in terms of growth, the South East and South West also saw modest increases, though at more subdued rates. The South East's house prices edged up 1.8%, with an average cost of £388,812, and the South West saw a 2.4% rise, with average prices around £310,480. Across the UK, the average property price now stands at £273,000, reflecting a 3% increase over the past year, albeit with a monthly price growth rate of just 0.8% from July to August 2025.

These regional disparities align with broader trends reported by government data and independent estate agencies. Earlier figures for 2024 from the UK House Price Index indicated that the North East and North West had more modest growth rates then—1.7% and 4.6%, respectively—while London had seen a 1.4% rise, suggesting a recent cooling in the capital’s market. Meanwhile, England overall experienced a 2.9% rise annually with the average home value around £296,000, reflecting continuing but slower growth compared to the North's surge.

More detailed local analysis reveals a nuanced London market, where despite the overall annual decline, certain boroughs bucked the trend with substantial price increases. Camden led the capital’s growth with an annual price rise of over £51,000, setting average prices nearing £904,000. Other London areas such as Hounslow and Waltham Forest also posted healthy increases, adding approximately £41,000 and £39,000, respectively, to average home prices. Conversely, prime central London boroughs like the City of Westminster and Kensington and Chelsea faced substantial price declines, with Westminster seeing an annual fall amounting to over £164,000, although prices in Kensington and Chelsea remain notably high, above £1.2 million on average.

The upward trajectory in the North’s housing market may be influenced by affordability relative to London and the South East, as well as ongoing demand for homes that balance lifestyle with economic considerations. Industry voices like Tom Evans, sales director at Purplebricks Estate Agency, have highlighted optimism for continued price rises into the coming year, seeing opportunities for first-time buyers amid steady market activity. Meanwhile, Robert Nichols, managing director of Purplebricks Mortgages, underscores that new lending initiatives—such as adaptations to the Bank of England’s borrowing framework—are expected to stimulate further market movement, particularly assisting first-time buyers.

In sum, while London’s housing market grapples with pockets of decline, the North of England is enjoying a buoyant period of price growth, contributing significantly to the national average increase and shifting some of the housing market’s focus northward. This regional divergence highlights the evolving dynamics of the UK property market amid economic changes and shifting buyer preferences.

📌 Reference Map:

  • Paragraph 1 – [1] (Daily Mail), [3] (UK House Price Index August 2025)
  • Paragraph 2 – [1] (Daily Mail), [3] (UK House Price Index August 2025)
  • Paragraph 3 – [2] (UK Government), [4] (UK Government), [5] (UK Government)
  • Paragraph 4 – [1] (Daily Mail)
  • Paragraph 5 – [1] (Daily Mail), [3] (UK House Price Index August 2025)
  • Paragraph 6 – [1] (Daily Mail)
  • Paragraph 7 – [1] (Daily Mail), [3] (UK House Price Index August 2025)

Source: Noah Wire Services