ONS Data - Confirming the North-South Price Growth Divide
Key stats
| Area | Annual change | Market position |
|---|---|---|
| North East | 5.9% | England’s strongest market |
| North West | 5.8% | Closely behind the North East |
| London | -3.7% | Annual decline |
Key takeaway
According to the ONS, northern England is the primary engine of English house price growth, led by the North East and North West.
The North East leads house price growth
The latest ONS figures reveal a clear regional divide:
| Area | Annual change |
|---|---|
| North East | 5.9% |
| North West | 5.8% |
| Yorkshire and the Humber | 4.3% |
| East Midlands | 3.2% |
| West Midlands | 2.7% |
| East of England | 2.3% |
| England | 2.3% |
| South West | 1.7% |
| South East | 1.2% |
| London | -3.7% |
Source: Office for National Statistics, UK House Price Index.
The North East recorded the strongest annual growth in England at 5.9%, with the North West only slightly behind at 5.8%. Yorkshire and the Humber also performed strongly, recording growth of 4.3%.
All three northern regions grew considerably faster than the England average of 2.3%, reinforcing the strength and consistency of the northern housing market.
Northern growth is more than twice the England average
ONS data shows that annual price growth in the North East and North West was more than two and a half times the England rate.
Yorkshire and the Humber also comfortably exceeded the national figure, growing almost twice as quickly as England overall.
This is not simply a story of one strong region. The three highest growth rates in the ONS regional data were all recorded in northern England.
London and the South East are the weakest markets
The contrast with southern England is clear.
According to the ONS, the South East recorded annual growth of just 1.2%, around half the England average. London was the only region in the table to record an annual decline, with prices falling by 3.7%.
The difference between the strongest and weakest markets is substantial. Annual performance in the North East was 9.6 percentage points higher than in London.
Affordability is driving the divide
Affordability remains a central factor in the widening regional divide identified by the ONS figures.
Lower property prices across northern England allow more buyers to remain active when borrowing costs are elevated. Smaller mortgage requirements also reduce the effect that changes in interest rates have on monthly repayments.
Buyers in London and the South East generally face much higher purchase prices and larger mortgages. Even relatively small changes in borrowing costs can therefore place greater pressure on household affordability and buyer demand.
Northern markets are better positioned to attract first-time buyers, families, landlords and local owner-occupiers seeking affordable houses.
What this means for investors
The latest ONS data points towards a clear geographical divide in housing market performance.
Affordable northern regions are leading house price growth, while higher-value markets in London and the South East remain under pressure.
For investors, the figures reinforce the importance of focusing on regions where affordability can support sustained buyer activity and long-term demand.
Individual property performance will always depend on factors such as purchase price, condition, property type and street-level demand. However, the wider regional picture is compelling: the three strongest regional growth rates reported by the ONS were all found in northern England.
The North East and North West are leading the market, Yorkshire and the Humber is also outperforming strongly, and all three are growing considerably faster than England as a whole.
