While the average UK house price continues to grow steadily amid economic headwinds, some areas are seeing prices surge well beyond the UK average.
Recent data reveals the cities leading the charge across the UK, with several proving real powerhouses for average house price growth.
Top 5 UK cities for annual house price growth
According to Zoopla’s House Price Index for September 2025, these cities are experiencing the strongest annual price growth:
- Belfast – 7.9%
- Liverpool – 3.0%
- Manchester – 2.6%
- Newcastle – 2.3%
- Glasgow – 2.1%
Belfast is the clear leader, with house price growth more than double that of any other major UK city. The average property price in Belfast now stands at £195,400, making it both a growth hotspot and one of the more affordable major cities for buyers.
The North-South divide deepens
A pattern emerges from the data: all five top-performing cities are located in the north of the UK or in Northern Ireland. This reflects a widening geographical divide in the housing market that favours the north of England and Northern Ireland.
Zoopla’s analysis shows that house price inflation is running at over 2% across Scotland, Wales, and northern regions of England. In stark contrast, house price inflation has “come to a standstill” across southern regions of England, where affordability pressures and weaker demand are limiting price increases.
London, traditionally a powerhouse of property price growth, recorded just 0.1% annual growth in September 2025, with an average price of £529,800. Other cities in the south of England are faring even worse, with Bournemouth recording negative growth of -1.9%.
National picture: steady but modest growth
Both Zoopla and Nationwide report similar national trends, though with slight variations in their figures:
- Zoopla reports UK house price inflation at 1.3% (September 2025)
- Nationwide reports annual growth at 2.4% (October 2025), with an average UK house price of £272,226
Zoopla’s data indicates that the average UK house price stands at £270,000, whilst their analysis reveals that sales agreed are down 3% year-on-year, marking the first annual decline in sales agreed in two years.
What’s driving regional variations?
Affordability remains the key factor differentiating regional markets. Northern cities and Belfast offer significantly better value, with average prices well below the national average, making them attractive to first-time buyers and investors. Rental yields can be more attractive in these regions.
Southern England’s affordability challenges, combined with higher stamp duty costs and speculation about potential property tax reforms, are dampening demand and constraining price growth.
For buyers seeking growth potential and relative affordability, the message is clear: look north.