House prices across Great Britain rose by 1.9% annually in October, but regional growth remained uneven as London values continued to fall and the Autumn Budget introduced further tax increases for landlords, according to the latest data released by e.surv.
The average GB house price reached £333,000, according to the November 2026 e.surv House Price Index. Prices were unchanged over the month and fell by 0.1% over the quarter.
Scotland recorded the strongest annual growth at 3.5%, followed by the North West at 3.3% and Yorkshire and the Humber at 3.2%.
Annual growth also remained above 2% in Wales, the West Midlands, East Midlands and North East, while the South West recorded growth of 1.8%.
Further south, annual price growth slowed to 1.1% in the East and 0.7% in the South East. London remained the only region recording an annual decline, with prices falling by 1.3% and dropping 1.0% over the quarter.
The report said a small upward revision to the previous month's index had lifted the starting point slightly, but did not change the wider pattern.
Annual price growth has eased over several months following a period of strengthening through 2025 and early 2026. The market continues to record annual gains, but these are becoming thinner.
Earnings outpace house price growth
Earnings have grown faster than house prices across every region of Great Britain since 2023, marking a change from the longer period since 2019 when prices and earnings moved more closely together.
The report said house price growth slowed as borrowing costs increased from 2022, while earnings continued to rise. By 2023, earnings were beginning to pull ahead of prices across every region.
London has recorded the widest gap between the two measures. Median full-time earnings have increased at an annualised rate of just over 8% since 2023, while house prices have fallen by around 1% a year.
That leaves a gap of more than nine percentage points between earnings and house price growth. The West Midlands, South West and South East also recorded sizeable differences.
Since 2019, the gap has been much smaller, with house prices only running ahead of earnings in a handful of regions. The longer period also captures the pandemic housing boom, when prices rose rapidly across much of Britain.
The report said stronger earnings relative to house prices improve buyers' borrowing capacity, although higher mortgage rates pull in the opposite direction and keep monthly borrowing costs well above the ultra-low-rate years.
With a 25% deposit and borrowing at 4.5 times income, a buyer would need to earn around £100,000 to purchase the average London home. That is almost twice median full-time earnings in the capital.
The gap also remains substantial across the South East, East of England and South West.
Scotland and the North East are the only two regions where median full-time earnings exceed the income required to buy the average home on the report's assumptions.
Across the rest of the North, Wales and the Midlands, the required income generally exceeds median full-time earnings, with the gap rising to 40% across southern England.
Earnings have made up ground against house prices since 2023, easing the income constraint on borrowing. However, mortgage rates remain markedly higher than during the ultra-low-rate years.
In London and much of southern England, buyers still face higher borrowing costs and average property values that require earnings far above the local median.
Autumn Budget leaves wider housing market largely unchanged
The housing market enters the closing months of 2026 with subdued price growth and clear regional differences still in place.
The Autumn Budget offered targeted support rather than a broad stimulus, with measures aimed at first-time buyers and developers alongside further property-income tax increases for landlords.
Your First Home will provide eligible first-time buyers purchasing new-build homes in England with a 20% government equity loan, a minimum 2.5% deposit and a five-year interest-free period.
The £4.7 billion scheme is expected to support around 70,000 households.
For developers, the government has committed not to make major changes to building regulations for the remainder of this Parliament, apart from measures needed to improve building safety.
The report said this should provide greater certainty over future costs and standards.
For landlords holding property personally in England, Wales and Northern Ireland, property-income tax rates will rise by a further two percentage points from April 2027, in addition to the two-point increase already announced by Rachel Reeves.
For landlords already managing higher financing costs, the change will further reduce post-tax rental income.
Taken together, the measures are unlikely to transform the near-term housing market. They provide more support for first-time buyers and developers, while adding another cost for some landlords.
