UK House Price Index: North of England house prices outpace wider UK market
Today, the UK House Price Index saw UK average house prices rise by 2.5% in the year to November 2025, a monthly increase of 0.3%, with the average price of a property in the UK in November valued at £271,000.
The figures continue to show stark regional variations, with house prices in the North of England increasing to 6.8% in the North East and 4.1% in the North West, in contrast to London where annual prices declined by 1.2%.
Peter Graham, head of real estate and construction for the North at RSM UK, comments: “Today’s figures highlight a continuation of the North-South divide, with the North West and North East driving up the national house price average. Affordability challenges are less acute in the north and housing supply is less constrained than other areas, such as London.
“During the run-up to the Autumn Budget, there was uncertainty from government around property taxes which resulted in a stagnated market, however the picture for 2026 appears more positive. Recent asking price data from Rightmove showed the largest January increase in more than two decades. And, whilst the latest UK inflation figures increased to 3.4% in the year to December 2025, these figures are expected to ease back to 2% by the summer. Paired with further reductions in interest rates expected across the coming year, this should help ease affordability challenges, particularly for first time buyers.”
He added: “The rental market is also strong in the North East and North West with annual rents inflation to December 2025 at 7.9% and 6.1% respectively. This annual rental growth is significantly higher than the national average of 3.9%, making the North an attractive prospect for landlords looking to invest.”