Average house prices across Great Britain rose 1.6% year-on-year to £327,400 in the latest House Price Index from e.surv Chartered Surveyors, with house price growth continuing at a measured pace.
The data points to a notable shift at the top of the regional table. Yorkshire and the Humber is now the strongest-performing region, overtaking Scotland with an annual growth of 3.6%.
The North West follows at 3.5%, while Scotland and Wales returned 3.3% and 3.2% respectively, reinforcing the continued momentum in more affordable markets.
London tells a different story. It remains the only region recording an annual decline, with prices down 4.0% year-on-year. Growth across the broader south is also muted: the South East is up just 0.3%, the East of England 0.9%, and the South West 1.3%, all reflecting the ongoing pressure on higher-value markets.
"The market continues to show resilience, but growth is being held back by affordability pressures," said Rob Owens, head of research at e.surv.
"Higher mortgage costs and wider household expenses are limiting how far buyers can stretch, particularly in higher-value areas. While demand is still there, it is more measured, and this is keeping price growth in check.
"Until borrowing costs ease, we're likely to see this pattern continue, with more affordable regions leading performance. Stronger house price growth is unlikely until households feel more confident about mortgage payments and wider bills."
The regional picture underlines a broader structural split in the market. Northern and devolved regions are absorbing demand more readily, supported by comparatively lower entry price points, while southern markets remain constrained by the gap between prices and what buyers can realistically borrow.
