For years, London has been viewed as one of the UK's most desirable property investment locations. But the latest official figures reveal a different picture: annual house price growth in the North East and North West is stronger than in the capital.
According to the UK House Price Index (HPI) for August 2026, published on 21 October 2026, prices in the North East rose by 3.2% year on year and the North West by 2.2%. London, in contrast, recorded an annual fall of 2.2%.
The figures reinforce the regional divide highlighted by property commentator Kate Faulkner in The Negotiator. For investors focused on affordable entry prices and rental income potential, Northern England deserves close attention.
1.The latest House Price Index: Northern England vs London
Year-on-year change with the average property price for each region
Bars show annual percentage change; figures beneath each value are the regional average property price.
Source: HM Land Registry, UK House Price Index, August 2026. Figures are provisional and subject to revision.
The North East's annual growth rate was 5.4 percentage points higher than London's. The average London property also costs more than three times the North East average. This is a substantial difference in the capital required to buy, though regional averages are not a substitute for evaluating individual properties.
2.Why is Northern England outperforming London?
Affordability is central to the contrast. Higher borrowing costs have made expensive markets harder for some buyers to access, while lower average prices in the North East and North West may support a broader pool of purchasers. Kate Faulkner's recent regional update points to the divergent performance of northern and southern markets since interest rates began rising in 2022.
3.Expert insight: Callum Pickering, Buying Manager
"The latest house price figures reinforce what we're seeing in the northern property market. Affordability remains a major advantage, particularly in the North East and North West, where buyers can access properties at a fraction of London prices.
For investors, it's not just about house price growth. It's about identifying the right properties in locations with established rental demand, sensible purchase prices and long-term potential.
At Find UK Property, we focus on these fundamentals when sourcing investment opportunities. The latest HPI figures show why the North of England continues to be an attractive area for property investors to consider."
Callum PickeringBuying Manager at Find UK Property4.The North East: affordable entry and positive annual growth
The North East registered the strongest annual house price growth among English regions in August 2026, while also recording the lowest average regional purchase price. This combination is relevant to investors seeking a lower initial outlay and potential long-term capital appreciation. Actual returns, however, depend on the property, tenants, expenses and local market.
5.The North West: a broad range of local markets
With an average property price of £220,393, the North West sits approximately £334,000 below London. The region contains major employment centres such as Manchester and Liverpool alongside more affordable residential towns. Investors can consider different price points and tenant markets, but should assess local rental demand and yields rather than relying on regional averages alone.
6.What should property investors take from the data?
The latest figures highlight the importance of property affordability and long-term capital growth potential. Lower purchase prices can make property investment more accessible, while the stronger performance of northern regions demonstrates that higher property values do not necessarily translate into better investment growth.
For investors choosing Find UK Property, the process is made even simpler. With agreed rental payments maintained even during periods when a property is unoccupied, investors can benefit from a more predictable rental income without the usual concerns around tenant vacancies, rental yields or day-to-day property management.
This allows clients to focus on the longer-term benefits of property ownership, including potential capital appreciation, while Find UK Property takes care of the practicalities.
7.Why Find UK Property focuses on affordable northern markets
At Find UK Property, we specialise in offering affordable residential investment properties, particularly across Northern England, where lower purchase prices can provide attractive opportunities for long-term property ownership.
Our clients can choose from our available selection of investment properties, with the reassurance that Find UK Property takes care of the entire management process. From finding and managing tenants to overseeing maintenance and providing agreed rental payments, we handle the day-to-day responsibilities on behalf of our clients.
Importantly, investors don't need to worry about identifying high-yield locations, managing tenants or experiencing gaps in rental income during periods when a property is unoccupied. With Find UK Property taking care of these considerations, clients can enjoy a straightforward, hands-off investment experience, with regular rental income and the potential for long-term capital growth.
Explore UK property investment opportunities
Interested in investing in residential property across Northern England? Contact Find UK Property to learn more about available opportunities and how to assess them against your investment objectives.
Speak to our team about affordable, income-producing properties in the North East and North West.
Sources and notes
HM Land Registry, UK House Price Index Summary: August 2026 (published 21 October 2026).
Kate Faulkner, "Property Market Regional Update: North-South house price divide widens", The Negotiator, 16 October 2026.
Market information is for general information only. Property values and rental income can rise or fall. Past performance does not guarantee future returns.
