House prices across the UK have shifted dramatically in recent years, with some regions seeing steady growth while others experience more affordable entry points for buyers.
If you’re planning to buy or remortgage, understanding where value lies can make a big difference — especially when lenders factor location into valuations and affordability.
Here’s a regional snapshot of how prices are moving, where homes are still affordable, and what that means for your mortgage plans.
North West — High Yields and Steady Growth
The North West continues to offer one of the best combinations of affordability and rental yield in the country.
Cities like Liverpool, Manchester, and Preston remain investor favourites thanks to strong tenant demand and below-average purchase prices.
Typical property values: around £190,000–£210,000
Average annual growth: 3–4%
✅ Best for: First-time buyers and landlords looking for value with long-term potential.
Midlands — Balanced Prices and Strong Employment
The Midlands has become a magnet for professionals priced out of the South East.
Cities such as Birmingham, Leicester, and Nottingham offer good transport links, vibrant economies, and consistent capital appreciation.
Typical property values: £230,000–£250,000
Average annual growth: 2–3%
✅ Best for: Buyers seeking long-term stability and good commuter connections.
Wales — Affordable Homes and Rising Popularity
Wales remains one of the most affordable regions for first-time buyers, with strong interest in Cardiff, Swansea, and Wrexham.
Coastal and rural areas continue to see increased demand from remote workers and second-home buyers.
Typical property values: £210,000–£230,000
Average annual growth: 2–4%
✅ Best for: First-time buyers or those looking for space and lifestyle value.
South West — Lifestyle Appeal and Limited Supply
The South West remains a popular relocation destination, but affordability is tightening due to limited supply and demand from out-of-area buyers.
Hotspots include Bristol, Bath, and Exeter, with slower-moving rural markets in Devon and Cornwall still offering deals for patient buyers.
Typical property values: £310,000–£350,000
Average annual growth: 1–2%
✅ Best for: Relocators or remote workers looking for lifestyle-led purchases.
London and South East — Expensive but Cooling
London’s prices remain the highest in the UK, but growth has slowed as affordability pressures mount.
Outer boroughs and commuter towns — like Croydon, Maidstone, and Reading — are attracting buyers seeking better value while maintaining city access.
Typical property values: £460,000–£500,000+
Average annual growth: 0–1%
✅ Best for: Professionals and investors seeking long-term capital growth.
Scotland — Strong First-Time Buyer Market
Scotland continues to perform strongly thanks to lower entry prices and government support for first-time buyers.
Cities like Glasgow, Dundee, and Edinburgh are seeing demand driven by students, young professionals, and investors.
Typical property values: £190,000–£230,000
Average annual growth: 2–3%
✅ Best for: Buyers seeking affordability with solid growth prospects.
Northern Ireland — Value and Resilience
Northern Ireland has one of the lowest average house prices in the UK, making it a standout for affordability.
Markets such as Belfast and Derry offer a mix of high yields and steady price recovery since the post-2008 dip.
Typical property values: £180,000–£200,000
Average annual growth: 2–3%
✅ Best for: First-time buyers and landlords focusing on long-term stability.
What This Means for Buyers
Affordability varies hugely by region, and lenders take this into account during valuations.
Buying in a region with lower average prices can help you qualify for a better mortgage deal.
If you’re remortgaging, improved property values in certain areas may increase your Loan-to-Value (LTV) band — unlocking better rates.
Mortgage Knight advisers can compare rates across over 90 lenders and help you understand how your chosen location affects what you can borrow.
Case Studies
Case Study 1: Lucy – First-Time Buyer in the North West
Lucy bought a two-bed terrace in Liverpool for £165,000. Mortgage Knight secured a 5% deposit mortgage, and her home’s value rose by 6% within 12 months.
Case Study 2: Mark – Relocating to the Midlands
Mark sold his London flat and bought a detached home in Leicester. The move cut his mortgage in half and improved his work-life balance — with Mortgage Knight finding a competitive rate.
Case Study 3: Priya – Buy-to-Let in Scotland
Priya invested in a two-bed flat in Glasgow for £190,000. We arranged a Landbay BTL mortgage at 75% LTV, yielding over 6% annually.
Frequently Asked Questions
Q1. Which regions offer the best value for buyers?
Ans:The North West, Midlands, and parts of Wales currently offer strong affordability and long-term growth potential.
Q2. Is London property still a good investment?
Ans: Yes, but it’s more about long-term gains than short-term profit. Outer boroughs and commuter towns now represent better value.
Q3. Can I get a mortgage for a property outside my local area?
Ans:Absolutely — lenders don’t restrict by geography, though affordability checks still apply.
Q4. Do property values affect my mortgage rate?
Ans:Yes, higher property values can reduce your LTV ratio, often leading to lower interest rates.
Q5. How often do house prices change?
Ans: Market data updates monthly, but trends shift slowly. Working with a broker ensures your affordability reflects real-time conditions.
Thinking about buying or remortgaging in a new area?
If you’re a contractor looking for professional mortgage guidance, we’re here to help. Our specialist knowledge and lender relationships enable us to provide expert advice tailored to your situation.
Mortgage Knight can help you understand local price trends and secure the best deal from over 90 UK lenders.
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