The average cost of a house in the UK has risen 15.3% in value between June 2021 and June 2026 - an average value increase of £36,100.
Average house prices have increased in 25 of the last 30 years. But the end to ultra-low mortgage rates is disrupting how home values behave.
Yearly rises not guaranteed
Our analysis of 32 million UK home values over the last five years showed that fewer than 1 in 7 (14%) properties experienced a value increase for every one of those years.
That doesn’t mean values in the housing market aren’t rising. Our July house price index revealed that overall, UK house prices have risen 1.5% in the last year.
That said, growth isn’t guaranteed every single year. Homeowners need to accept values may stay the same some years, rise more slowly in others or even decrease modestly.
While fewer values increase every year, persistent value decreases are rare. Only 0.2% of UK homes lost value every single year between 2021 and 2026.
Your home’s value growth or decline - and the extent that potential buyers in your area have been impacted by borrowing costs - will depend on where you live.
Mortgage rates hit differently around the UK
The last five years have seen borrowing costs change dramatically. Mortgage rates that started 2021 as low as 0.79% have soared to 4-5% on average today.
Borrowing has become more expensive, which has disrupted how home values have performed. The greatest impact on growing values has been felt in regions with the highest average house prices.
Buyers in areas where values stayed at or below the UK’s average house price (£271,900) were better equipped to cope with rising mortgage rates. This resilience meant more people were able to buy property creating demand which pushes values higher every year.
Homeowners in the North have reasons to celebrate
More homes in the North have consecutively increased in value every year than anywhere else in the UK.
The North West is a stand-out: 29.7% of home values in this region increased in every single one of the last five years.
Scotland (22.6%), Yorkshire & The Humber (22%), the North East (20.5%) and Wales (19.1%) followed, all overshadowing less widespread gains in the South.
Region/country | Homes that have grown in value every year | % homes increasing over 5 years | Homes that have fallen in value every year | % homes decreasing over 5 years |
N Ireland | 300,400 | 37.9% | 0 | 0.0% |
North West | 1,006,800 | 29.7% | 700 | 0.0% |
Scotland | 599,200 | 22.6% | 9,300 | 0.3% |
Yorks & Humber | 551,200 | 22.0% | 1,500 | 0.1% |
North East | 250,800 | 20.5% | 600 | 0.0% |
Wales | 277,900 | 19.1% | 300 | 0.0% |
Two sides to the Midlands’ story
Whether homes are located in the East or West Midlands had a big influence on whether they gained value or not in the last five years. More than half a million (19.6%) homes in the West Midlands saw their value rise every year between 2021 and 2026.
Yet over in the East Midlands, homeowners enjoyed half the success. Just 9.8% of homes recorded successive value gains.
Region/country | Homes that have grown in value every year | % homes increasing over 5 years | Homes that have fallen in value every year | % homes decreasing over 5 years |
West Midlands | 502,400 | 19.6% | 1,900 | 0.1% |
East Midlands | 212,400 | 9.8% | 800 | 0.0% |
The South has lost its shine
Mortgage affordability has become so stretched in the South that year-on-year growth is highly unlikely rather than guaranteed. Restricted affordability means would-be buyers and average house prices start off from a higher base. Only 1 in 20 homes in Southern England saw their value rise every year from 2021.
Own a property in London, the South West, the South East or the East of England? Less than 5% of homes in these regions increased in value every one of the last five years. See if yours was one of them with our My Home tool.
Region/country | Homes that have grown in value every year | % homes increasing over 5 years | Homes that have fallen in value every year | % homes decreasing over 5 years |
London | 178,000 | 4.6% | 30,400 | 0.8% |
South West | 107,300 | 4.1% | 1,300 | 0.0% |
South East | 129,400 | 3.2% | 6,100 | 0.2% |
East of England | 72,600 | 2.6% | 3,700 | 0.1% |
Has your area hit the value jackpot?
A closer look at our data revealed a number of local markets at odds with the national average.
Post Town | Region | Number of homes registering consistent price gains over 5 years | % homes registering an increase in value each year |
Bonnybridge | Scotland | 3,660 | 60.8% |
Antrim | Northern Ireland | 10,583 | 60.5% |
Castleford | Yorkshire & Humber | 13,395 | 53.6% |
Wednesbury | West Midlands | 10,940 | 51.3% |
Dukinfield | North West | 4,817 | 51.1% |
Tonypandy | Wales | 4,636 | 46.6% |
Hebburn | North East | 4,881 | 42.6% |
Hope Valley | East Midlands | 2,019 | 37.5% |
Dagenham | London | 15,800 | 31.6% |
Bicester | South East | 7,408 | 27.7% |
Dursley | South West | 1,387 | 15.1% |
Witham | East of England | 2,208 | 13.3% |
Dagenham is a prime example. Homes in this corner of East London cost 25% less than the capital’s average (£400,000 versus £525,000).
Dagenham has remained an affordable area of the capital, despite transport improvements including the Elizabeth Line and the Overground extension to Barking Riverside adding appeal.
It’s this combination of commutability and affordability that’s boosted Dagenham’s resilience. Here 31.6% of homes have increased in value every year since 2021. This compares to London’s average of 4.6%.
Hebburn in the North East is another example. More than 42% of the town’s homeowners saw their property’s value rise in each of the last five years. Having the Tyne & Wear Metro is a huge plus point, as is the town’s average sold price of £168,146.
Finding the UK’s most resilient home value, however, required a trip even further north. A whopping 60.8% of homes in the Scottish village of Bonnybridge saw their value increase every year since 2021.
Bonnybridge also has the magic formula. There's a low average property price (£220,000) and great transport links to city centres, with both Glasgow and Edinburgh less than an hour away.
Don’t bank on commutability
Witham in the East of England provided a warning when it came to home values. Despite being the region’s strongest performer over the last five years, only 13.3% of homes in this town increased in value each year.
The town’s speedy 45-minute commute into London Liverpool Street wasn’t enough to equal Dagenham, Hebburn and Bonnybridge’s resilience. What’s holding back growth in Witham? An above-average home value of £320,000.
When homes sit at the top end of people’s affordability, their value is less likely to rise every year - even if the transport links are good.
Taking the guesswork out of values
On the move? Every region, town and even postcode has its own unique local property market conditions. Tracking values using My Home will help you:
Estimate how much equity is in your current home, so you can start planning your next move
Set a realistic asking price, reducing the risk of reductions later down the line
Understand the market where you want to move, showing whether it’s highly resilient or undergoing value falls (which could boost your bargaining power)
Discover if your home’s value has increased over the last five years by signing up to My Home. Simply enter your address, and find out in just a few clicks.