Housing hotspots shift to Midlands and North as London prices stall

House price growth in 2025 was driven by locations well beyond London, with the strongest gains recorded across the Midlands, the North and parts of the South West, according to new mortgage data from Lloyds Bank.

Plymouth recorded the largest annual increase in average home values, rising by 12.6% to £278,808 over the past year. The figures are based on Lloyds’ own mortgage lending data and point to a market where growth is strongest in areas offering better affordability and greater scope for lifestyle-led moves.

Properties in Stafford and Wigan also saw double-digit growth, with values up 12.0% and 10.5% respectively. Both have well-established regional economies and remain markedly cheaper than nearby city centres, a pattern which is repeated across much of the top 10.

Yorkshire and the Humber

Yorkshire and the Humber regions feature prominently, with Wakefield posting growth of 8.7% and Hull’s prices rising by 6.5%. Hull’s appearance follows its recent recognition as one of National Geographic’s ‘Best of the World’ destinations for 2026, adding to its growing profile as a place to live and visit.

The Midlands and North West account for several more of the strongest performers. Mansfield’s property recorded annual growth of 8.7%, Liverpool’s rose by 7.5%, and Rugby saw prices increase by 7.3%. Falkirk completed the top 10 with a 7.1% rise.

Biggest falls in London and the South East

London, however, is at the opposite end of the scale. It was the only UK region to see average prices edge lower over the year, dipping by 0.1%. Despite the fall, the capital remains the most expensive market overall, with the average home valued at £574,514, underlining the continued gap between London and the rest of the country.

And it was in the South East and parts of the West Midlands where price falls were most concentrated. Crawley and High Wycombe recorded the sharpest declines, with values down 8.9% and 7.4% respectively. Solihull and Worcester both recorded falls of more than 6%, while Cheltenham (-5.0%) and Brighton (-4.8%) also saw price drops. Although prices fell in Cardiff (- 5.2%), Wales posted modest growth.

A whole range of influencing factors

According to Amanda Bryden, the data highlights how buyers are weighing up a whole range of factors when choosing where to live. She says: “Our customers’ dream homes are found in pockets around the UK, and we’ve supported thousands of people to take their next home buying step this year.”

She also said that swings in local prices can affect how much buyers may need for a deposit or wider moving costs. Bryden added that buyers who are willing to explore beyond their first choice location may find areas where their money goes further, particularly across northern regions and Scotland.