70% of Britain’s housing market is in recovery with prices trending upwards
The latest research from Yopa reveals that 70% of the British housing market is now in recovery with prices trending upwards following the challenging conditions of the past two years. This is despite the broader national picture showing that average house prices have edged down over the last six months.
Yopa analysed six months of British house price data* to calculate the average monthly price movement across the market, identifying which areas are in a phase of Reset (where prices are trending down) and which are in Recovery (where prices are trending up).
The data shows that the average house price in Britain currently stands at £272,618, having declined by an average of -0.02% per month over the past six months.
This suggests that, at a national level, the market remains in Reset. House prices surged five years ago during the pandemic, driving rapid growth and, in many cases, inflating values beyond sustainable levels. More recently, however, prices have begun to stabilise and adjust. While some may characterise this as a market downturn, it is more accurately described as a recalibration, with values returning to more sustainable levels.
With the average monthly price change over the past six months sitting marginally in negative territory, six of Britain’s 11 major regions are also experiencing a localised Reset. London stands out in particular, where average monthly prices have declined by -0.58% over the period.
However, five regions have recorded positive average monthly growth over the past six months, indicating that these markets have entered a phase of Recovery following a prolonged period of economic volatility and uncertainty. The strongest recovery has been recorded in the North East, where average monthly growth stands at 0.49%.
While the national picture points to a market in Reset, a more granular analysis at Local Authority (LA) level reveals a different story. Across Britain, 241 of the nation’s 349 LA districts are currently in Recovery, having posted positive average monthly price growth over the past six months. This equates to 69.1% of the market.
The strongest recoveries have been recorded in South Ayrshire (1.94%), East Cambridgeshire (1.86%), Na h-Eileanan Siar (1.61%), Northumberland (1.47%), and West Devon (1.47%).
Meanwhile, it is the nation’s most expensive housing markets that are seeing the most significant Resets.
In Kensington & Chelsea, prices have declined by an average of -3.92% per month over the past six months, followed by Camden (-3.73%), the City of Westminster (-3.48%), Hammersmith & Fulham (-2.36%), and Merthyr Tydfil (-1.54%).
Verona Frankish, Chief Executive Officer at Yopa, commented:
“While the national picture shows that house prices have edged down marginally in recent months, that only tells part of the story. When you look beneath the headline figures, the majority of Local Authority areas across Britain are now seeing prices move upwards again, signalling a clear return to growth in many parts of the market.
After a difficult couple of years shaped by economic uncertainty and rapidly rising mortgage rates, conditions have undoubtedly been challenging. Borrowing costs soared from the historic lows seen during the pandemic, placing pressure on affordability and cooling buyer demand. That shift inevitably caused the market to reset following a prolonged period of exceptional, and ultimately unsustainable, price growth.
However, what we are now witnessing is resilience. As buyers and sellers adjust to the new lending environment, confidence is steadily returning at a local level. The fact that most Local Authorities are already in recovery demonstrates that the market is not in decline, but in transition — moving towards a more stable and sustainable footing after years of volatility.”
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