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Revealed: The Regions Driving Britain’s Property Market Recovery

Although the national market is classified as being in reset, where prices are trending down overall, Britain’s property market recovery is already emerging across several regions where prices have been rising over the past six months, according to new research.

The data shows that the average property price across Great Britain currently stands at £272,618, having declined by an average of 0.02 per cent per month between July and December 2025, leaving the national market categorised as being in reset.

Britain’s property market recovery led by five regions

Despite the national average remaining marginally negative, five of Britain’s regions are now classified as being in recovery, having recorded positive average monthly property price growth over the six months analysed.

The North East recorded the strongest regional recovery, with property prices increasing by an average of 0.49 per cent per month. Wales followed with an average monthly growth of 0.41 per cent, while Yorkshire and the Humber recorded 0.40 per cent growth. The North West saw average monthly growth of 0.36 per cent and the East Midlands recorded growth of 0.24 per cent.

Six regions remain in reset

Six of Britain’s 11 major regions recorded negative average monthly price movement between July and December 2025 and are therefore classified as being in reset.

London recorded the largest regional decline, with property prices falling by an average of 0.58 per cent per month over the six months.

Other regions remaining in reset include the South West (-0.29%), West Midlands (-0.23%), South East (-0.22%), Scotland (-0.12%), and the East of England (-0.01%).

Majority of local property markets now in recovery

While the national market remains in reset, a far greater proportion of local property markets are now classified as being in recovery.

Across Britain, 241 of the country’s 349 local authority districts recorded positive average monthly property price growth between July and December 2025, meaning 69.1 per cent of local markets are now in recovery.

Strongest local authority recoveries

South Ayrshire* in Scotland recorded the strongest recovery, with property prices increasing by an average of 1.94 per cent per month between July and December 2025.

East Cambridgeshire in the East of England followed, with average monthly growth of 1.86 per cent, while Na h-Eileanan Siar in Scotland recorded growth of 1.61 per cent.

Both Northumberland, in the North East, and West Devon, in the south west, recorded average monthly growth of 1.47 per cent over the six-month period.

Areas seeing the largest resets

The data also highlights a number of local authority markets where property prices declined over the six months analysed, leaving them classified as being in reset.

In London, Kensington and Chelsea recorded the largest average monthly decline, with prices falling by 3.92 per cent. Camden followed with a decline of 3.73 per cent, the City of Westminster saw prices decrease by 3.48 per cent and Hammersmith and Fulham recorded an average monthly decline of 2.36 per cent. Meanwhile, Merthyr Tydfil in Wales saw property prices fall by 1.54 per cent.

Market moving towards stability

Verona Frankish, Chief Executive Officer at Yopa, which conducted the research, commented: “While the national picture shows that house prices have edged down marginally in recent months, that only tells part of the story. 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.”

 

*Featured image: The ruins of Dunure Castle, in South Ayrshire

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Alex Wright, Editor