UK House Prices: A Market Holding Its Nerve
The latest Zoopla House Price Index paints a picture of a housing market that, while far from buoyant, is proving more resilient than many anticipated, write Clive Scrivener MRICS and Zah Azeem MRICS, Partners at Wimbledon based Chartered Surveyors Scrivener Tibbatts.
Annual house price growth currently stands at 1.3% – down from 1.8% this time last year – with the average UK property valued at £271,700. On the surface, that suggests a market slowing rather than stalling. Look a little closer, however, and a more nuanced story emerges.
A tale of two markets
Regionally, the divide is becoming increasingly pronounced.
Northern regions continue to outperform. The North East leads Great Britain with annual growth of 3.2%, closely followed by the North West at 3.1% and Scotland at 2.6%. Northern Ireland remains the standout performer across the UK, posting a striking 6.7% increase.
Cities such as Liverpool (4.5%), Manchester (3%) and Newcastle (3%) are driving much of this momentum, supported by comparatively stronger affordability and sustained demand.
In contrast, the South is experiencing far flatter conditions. London and the South East have both slipped marginally into negative territory (–0.2%), while the South West is effectively static at 0.1%. Some local markets – including Bournemouth (–1.7%), Cambridge (–0.9%) and Brighton (–1.1%) – are seeing more noticeable downward pressure.
A more measured market
Across the board, the consensus from industry professionals is clear: this is not a market in retreat, but one that has become more selective.
Activity levels are holding up, but buyers are proceeding with greater caution. Affordability constraints, uncertainty around interest rates, and wider geopolitical tensions are all weighing on sentiment. First-time buyers, in particular, are feeling the impact as mortgage options tighten and costs remain elevated.
At the same time, supply levels – especially for flats in some urban markets – are giving buyers greater negotiating power. Transactions are taking longer, and pricing has become more critical than ever.
Pricing realism returns
One of the more notable shifts over the past year has been a recalibration of seller expectations. In the second-home market especially, the inflated pricing seen during the pandemic has begun to unwind. Tax changes and increased listings have, in some areas, tipped the balance firmly in favour of buyers, creating more room for negotiation.
This return to pricing realism is not necessarily negative. Rather, it reflects a market adjusting to more sustainable conditions after a period of exceptional growth.
Signs of cautious optimism
Despite ongoing pressures, there are early indications of stabilisation.
Mortgage rates, while still relatively high, have begun to settle, and lenders are gradually reintroducing more competitive fixed-rate products. Encouragingly, buyer enquiries have picked up following the Easter period, suggesting that underlying demand remains intact.
For agents and property professionals, the message is clear: success in this market depends on precision. Accurate pricing, clear communication, and proactive support for buyers are now essential.
Looking ahead
Much will depend on the trajectory of interest rates and inflation over the coming months. External factors – from global conflict to domestic policy decisions – will continue to influence both confidence and affordability.
However, the current data suggests a market that is functioning rationally. Needs-based transactions are still progressing, demand has not disappeared, and there is capacity for improvement as financial conditions ease.
In short, this is not a market that has lost its footing – but one that is learning to move more carefully.
If you would like to discuss something related to a property valuation specifically a Lease Extension, Freehold Valuations and Market Valuations for disputes, please contact Clive or Zah direct via email at clive@scrivenertibbatts.co.uk and zah@scrivenertibbatts.co.uk or call 020 8947 7040.
