House prices across the UK are experiencing their most significant regional shift in years, with northern England leading unprecedented growth while London trails behind. The North West has emerged as the fastest-growing property market, expected to see prices rise by 29.4% by 2029.
This dramatic reversal challenges traditional investment patterns where London dominated property appreciation. According to Savills research, the capital now shows the slowest growth rate at just 17.1% over the same period, despite remaining the most expensive region with average prices of £1.1 million in areas like Kensington and Chelsea.
Manchester Evening News reports that Greater Manchester postcodes are driving much of this northern surge, with Higher Broughton (M7) leading at 18% annual growth. Average UK house prices reached £298,237 in July, representing a £1,000 increase from June and marking the first sustained national growth in two years.
Northern regions dominate growth
The North East and Yorkshire share second place with 28.2% predicted growth, encompassing cities like Newcastle, Leeds and Sheffield. These traditionally affordable regions are becoming increasingly attractive to buyers seeking both value and investment potential.
The West Midlands follows closely with 26.4% growth, while Scotland and Wales occupy the middle ground at 25.8% and 25.2% respectively. The overall UK average sits at 23.4% growth by 2029.
London loses its crown
Despite astronomical property values, London's growth has stagnated compared to other regions. The South East trails marginally better at 17.6%, followed by the East of England at 19.9% and the South West at 21.6%.
This shift reflects broader economic rebalancing as more people move away from London's high costs. The capital's property market faces headwinds from affordability constraints and changing work patterns post-pandemic.
Investment implications
Current homeowners in the North West face a potentially lucrative period, while prospective buyers may want to act quickly before prices surge further. The data suggests a fundamental realignment in UK property dynamics.
For those considering purchases in northern regions, timing appears crucial as these areas transition from affordable options to high-growth investments. The traditional north-south property divide is rapidly evolving.
Sources used: "Metro", "Manchester Evening News", "Savills" Note: This article has been edited with the help of Artificial Intelligence.
