Only about one in seven homes across the UK has consistently increased annually in value from June 2022 onwards, according to estimates by property website Zoopla.
Zoopla analysed valuations of individual homes, starting in June 2021 and ending in June 2026. It specifically looked at the month of June, analysing whether valuations had increased that month compared with the month of June the year before. For example, covering the first year, Zoopla looked at whether the valuation of a home in June 2022 was higher than in June 2021.
Zoopla estimated that just 14% of UK homes – equating to just over four million properties – had increased in value annually each June from June 2022 to June 2026. While some homes will not have consistently increased in value each year, Zoopla said its house price index indicates the average UK home value has increased by 15.3% over the past five years, equating to an average of £36,100 per home.
Regional Variations
Zoopla said that rises in mortgage rates, affecting borrowers’ costs, will have had an impact over the five-year period. Richard Donnell, executive director at Zoopla, said: “Housing markets across Northern Ireland, the North and Scotland have seen homeowners keep building equity in their home because the local housing market was less exposed to the affordability pressures that higher mortgage rates bring.
“For homeowners, this analysis highlights why you cannot rely on national or regional averages when assessing what your home is worth. Trends vary by property type and at a hyper local level. Understanding whether your local area has consistently built equity or flatlined is essential information, if you want to understand what you can afford to buy next or you are actively planning your next move.”
Industry Insights
Aneisha Beveridge, research director at Connells Group, said: “The UK’s housing market has become increasingly fragmented over the last five years. The strongest performance has generally come from more affordable markets across the north of England, Scotland and Northern Ireland, where lower price points have helped insulate buyers from higher mortgage rates and supported continued demand.
“At the same time, the pandemic sparked a surge in demand for larger homes in commutable areas outside London, driving strong price growth across much of the south between 2020 and 2022. However, as mortgage rates rose and stamp duty incentives were withdrawn, that momentum faded and price growth in many of these markets has since come under pressure.
“Despite these headwinds, our research shows the middle market is still moving. Most buyers and sellers are driven by life events rather than short-term house price movements, and for homeowners who typically move every 10 to 12 years, modest annual price falls rarely affect their ability to transact. The challenge comes when weak price growth persists for many years.”
Charlotte Harrison, chief executive officer of home financing at Skipton Building Society, said: “Consistent house price growth can help homeowners build equity, but equity alone doesn’t guarantee people can move. Our latest Skipton Group home affordability index found the gap between buying affordability and living affordability is the widest it’s been this decade. For many households, the challenge is no longer whether their home has risen in value, but whether they can afford the higher ongoing costs of their next property.” She added: “While sustained house price growth can be positive for existing homeowners, improving access to homeownership remains critical if future generations are to share in those benefits too.”
Nathan Emerson, CEO at property professionals’ body Propertymark, said: “Many purchasers are factoring in the long-term cost of homeownership rather than focusing solely on securing a property quickly. At the same time, sellers who price their homes realistically continue to attract strong interest, demonstrating that demand remains resilient where expectations align with current market conditions.”
Regional Breakdown
Here are the percentages of homes in regions or nations estimated by Zoopla to have increased in value annually each month of June, covering June 2022 to June 2026 inclusive:
- Northern Ireland, 37.9%
- North West, 29.7%
- Scotland, 22.6%
- Yorkshire and the Humber, 22.0%
- North East, 20.5%
- West Midlands, 19.6%
- Wales, 19.1%
- East Midlands, 9.8%
- London, 4.6%
- South West, 4.1%
- South East, 3.2%
- East of England, 2.6%
Top Performers
Zoopla also identified “top performers” in regions or nations, where property values are particularly likely to have increased each year. Here are the locations, followed by the percentage of homes estimated to have consistently increased in value annually in each month of June between June 2022 and June 2026 inclusive:
- Northern Ireland, Antrim, 60.5%
- North West, Dukinfield, 51.1%
- Scotland, Bonnybridge, 60.8%
- Yorkshire and the Humber, Castleford, 53.6%
- North East, Hebburn, 42.6%
- West Midlands, Wednesbury, 51.3%
- Wales, Tonypandy, 46.6%
- East Midlands, Hope Valley, 37.5%
- London, Dagenham, 31.6%
- South West, Dursley, 15.1%
- South East, Bicester, 27.7%
- East of England, Witham, 13.3%
