New analysis from property portal Zoopla has revealed a stark regional divide in the UK housing market during 2025, with approximately half of the nation's 30 million homes registering an increase in value. The comprehensive data shows a clear north-south split, with homeowners in northern regions, Scotland and Northern Ireland enjoying the most significant gains.
Regional Performance Highlights
According to Zoopla's estimates, about 15.2 million properties across the UK saw their value rise by one per cent or more during 2025, delivering an average cash increase of £9,900 per home. At the upper end of the scale, an impressive 3.1 million homeowners experienced value increases of £20,000 or more throughout the year.
Northern Dominance in Value Growth
The research identified "clear-cut" geographical differences, with more than 70 per cent of homeowners in northern English regions, alongside those in Scotland and Northern Ireland, recording value gains for their properties. Northern Ireland emerged as the standout performer, where an extraordinary 94 per cent of homes were estimated to have experienced price increases, averaging £14,200 per property.
Scotland followed closely with 73 per cent of homes increasing in value by an average of £10,400, while the North West of England saw 72 per cent of properties gain value, averaging £9,700 per home. Renfrewshire in Scotland was identified as Britain's top-performing local authority area, with a remarkable 95 per cent of homes registering value increases.
Southern England Faces Headwinds
In contrast, six in ten homes that decreased in value during 2025 were located in southern England. Zoopla attributed this trend to affordability challenges stemming from higher baseline house prices and increased choice for buyers in these markets. Approximately 9.1 million homes across the UK lost at least one per cent of their value last year, with an average loss of £10,800 per property.
Property Type Performance
The analysis also revealed significant variations between different property types. Terraced and semi-detached homes proved most resilient to market pressures, with over half (56 per cent) registering consistent value increases throughout 2025. Conversely, flats were most likely to experience value losses of one per cent or more, with exactly half of all flats seeing their values decline during the year.
Local Hotspots Emerge
Beyond regional trends, Zoopla identified specific local authority areas that outperformed within their regions. In Wales, Wrexham stood out with 79 per cent of homes increasing in value, while Northumberland in the North East saw 78 per cent of properties register gains. Other notable hotspots included Chorley in the North West (88 per cent), Calderdale in Yorkshire and the Humber (77 per cent), and Dudley in the West Midlands (77 per cent).
Market Outlook and Expert Commentary
Richard Donnell, executive director at Zoopla, commented on the findings: "Our analysis shows how varied changes in home values are across the country and within local areas. The general trend is that most home values continue to increase steadily upwards, especially away from southern England."
Donnell added: "However, many homes are registering broadly static or lower values as the market continues to adjust to higher mortgage rates and more homes for sale, which is boosting choice for buyers. This is particularly prevalent in southern England. The choppier and complex market conditions in the south make it critical for sellers to be realistic on pricing in 2026."
Regional Breakdown of Performance
The detailed regional data reveals a graduated scale of performance across the UK:
- Northern Ireland led with 94% of homes gaining value, averaging £14,200
- Scotland followed with 73% gaining, averaging £10,400
- North West England saw 72% gaining, averaging £9,700
- North East England recorded 67% gaining, averaging £6,600
- Wales showed 60% gaining, averaging £8,000
- Southern regions trailed, with London at 35% and the South East at 32%
Top Local Authority Performers
Zoopla's analysis of local hotspots (excluding Northern Ireland) revealed:
- Renfrewshire, Scotland: 95% of homes increased, averaging £12,500 gain
- Chorley, North West: 88% increased, averaging £11,500
- Wrexham, Wales: 79% increased, averaging £10,400
- Northumberland, North East: 78% increased, averaging £8,600
- Calderdale, Yorkshire and Humber: 77% increased, averaging £10,000
The property website automatically values UK homes every month, providing ongoing insights into market movements. The 2025 data highlights how regional economic factors, housing supply dynamics and affordability pressures continue to shape the UK's diverse property landscape, creating both opportunities and challenges for homeowners depending on their location and property type.
