The UK regions with the cheapest property as prices grow at the fastest rate in two years – full list
House prices have grown across the UK, but some areas are still more affordable to buy in than others, according to the latest Nationwide House Price Index.
Northern Ireland leads the way for growth speed with an impressive 8.6 per cent price increase in Q3 2024, while Scotland and Wales also saw notable growth at 4.3 per cent and 2.5 per cent respectively.
Across England, prices rose by 1.9 per cent overall, with northern England outperforming the south. The North West emerged as the top-performing English region, boasting a five per cent year-on-year increase.
The most affordable homes, however, can be found in the north of England and Scotland.
UK regional house price
Northern England – £161,066
Scotland – £184,471
North Ireland – £196,197
Yorkshire & The Humber – £206,493
Wales – £207,113
North West – £215,807
East Midlands – £232,390
West Midlands – £243,599
East Anglia – £270,906
South West – £303,522
Outer South East – £336,253
Outer Metropolitan – £424,345
London – £524,685
Northern England remains the most affordable region, with an average price of £161,066. London continues to be the most expensive area, with prices more than three times higher than Northern England at £524,685.
The North-South divide is evident, with all southern regions, except East Anglia, showing higher average prices than their northern counterparts.
London’s housing market continues to show resilience, with prices rising by two per cent year-on-year, making it the best-performing southern region. This growth is particularly noteworthy given the capital’s already high property values.
In contrast, East Anglia stands out as the only UK region to record an annual price fall, with prices down 0.8 per cent year-on-year. This decline suggests potential opportunities for buyers in the area.
When considering affordability, northern England property prices remain significantly lower than London’s average of £524,685, highlighting the stark regional differences in housing affordability across the UK.
The Outer Metropolitan area, which includes commuter towns around London, maintains its position as the second most expensive region, with average prices at £424,345.
Terraced houses have shown the strongest performance among property types, with prices rising by 3.5 per cent over the past year. Semi-detached homes and flats followed closely, increasing by 2.8 per cent and 2.7 per cent respectively.
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Detached properties saw more modest growth at 1.7 per cent. However, they maintain an advantage over the longer term.
Nationwide’s Chief Economist Robert Gardner commented: “Since Q1 2020, the price of an average detached property increased by nearly 26 per cent while flats have only risen by 15 per cent over the same period.”
This trend reflects the ongoing impact of the pandemic-era “race for space”, with buyers continuing to prioritise larger homes and outdoor areas.
Despite recent gains, flats remain the laggards in the property market, potentially offering opportunities for first-time buyers and investors.
The recent trends in UK house prices reflect a complex interplay of economic factors.
The expert added: “Income growth has continued to outstrip house price growth in recent months while borrowing costs have edged lower amid expectations that the Bank of England will continue to lower interest rates in the coming quarters.”