British housing market shows recovery despite national reset

70% of UK councils are seeing house prices rise, even as the national market remains  in reset. 

The British housing market is showing signs of recovery, according to the latest research from Yopa, with 70% of local authorities reporting rising prices despite national figures suggesting a slowdown. 

Published today (13th March), the research found the average house price in Britain stands at £272,618, having declined by an average of -0.02% per month over the past six months.

To conduct the research, Yopa analysed six months of house price data to track which areas are in ‘reset’ – where prices are falling down – and those in recovery, where prices are trending up. 

Six of Britain’s 11 major regions are experiencing a localised reset, with London standing out. Average monthly prices in the capital have declined by -0.58% over the period. 

However, five regions have recorded positive growth, including the North East, where an average monthly rise stands at 0.49%.

A more detailed analysis at local authority level reveals a different picture. Across Britain, 241 of 349 districts – 69% of the market – are in recovery, posting positive monthly growth.

The strongest gains were in South Ayrshire (1.94%), East Cambridgeshire (1.86%), Na h-Eileanan Siar (1.61%), Northumberland (1.47%) and West Devon (1.47%).

By contrast, the priciest markets are experiencing the largest resets. Kensington & Chelsea led declines at -3.92% per month, followed by Camden (-3.73%), the City of Westminster (-3.48%), Hammersmith & Fulham (-2.36%) and Merthyr Tydfil (-1.54%).

Verona Frankish, Chief Executive Officer at Yopa, said: ‘When you look beneath the headline figures, the majority of local authority areas across Britain are now seeing prices move upwards again, signalling a clear return to growth in many parts of the market.

‘After a difficult couple of years shaped by economic uncertainty and rapidly rising mortgage rates, conditions have undoubtedly been challenging.

‘Borrowing costs soared from the historic lows seen during the pandemic, placing pressure on affordability and cooling buyer demand. That shift inevitably caused the market to reset following a prolonged period of exceptional, and ultimately unsustainable, price growth.’

Image: Frank Chan/UnSplash 

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