Homeowners who bought or already owned a property in 2021 may now be sitting on a noticeably more valuable asset. On average, UK homes have gained around £36,100 in value over the period — but the level of growth varies considerably depending on where you live.
The average cost of a UK home increased by 15.3% between June 2021 and June 2026, representing an average gain in value of approximately £36,100. Historically, house prices have risen in 25 of the last 30 years. However, the move away from the era of exceptionally low mortgage rates has changed the way property values are behaving across different parts of the country.
Mortgage Rates Are Affecting Different Parts of the UK Differently
Borrowing conditions have changed significantly over the past five years. At the beginning of 2021, some mortgage rates were available from as little as 0.79%. Since then, borrowing costs have risen substantially, with average mortgage rates reaching around 4% to 5%. Higher borrowing costs have reduced affordability for many buyers and influenced the pace at which property values have increased. The impact has generally been more noticeable in regions where average house prices are already high. By contrast, buyers in locations where property values remained around or below the UK average house price of £271,900 have often been better positioned to absorb higher mortgage costs. That relative affordability has helped maintain buyer activity in many of these areas. Where demand remains strong, property values have had a greater chance of continuing to rise.
Homeowners in the North Have More Reasons to Celebrate
Northern regions have recorded some of the strongest levels of consistent property value growth during the past five years. The North West is particularly notable, with 29.7% of homes increasing in value during every single year of the five-year period. It was followed by Scotland at 22.6%, Yorkshire & The Humber at 22%, the North East at 20.5%, and Wales at 19.1%. These figures are considerably stronger than the levels of continuous growth recorded across many southern regions.
| Region / Country | Homes That Increased in Value Every Year | % of Homes Increasing Over 5 Years | Homes That Fell in Value Every Year | % of Homes Decreasing Over 5 Years |
|---|---|---|---|---|
| Northern Ireland | 300,400 | 37.9% | 0 | 0.0% |
| North West | 1,006,800 | 29.7% | 700 | 0.0% |
| Scotland | 599,200 | 22.6% | 9,300 | 0.3% |
| Yorkshire & The Humber | 551,200 | 22.0% | 1,500 | 0.1% |
| North East | 250,800 | 20.5% | 600 | 0.0% |
| Wales | 277,900 | 19.1% | 300 | 0.0% |
A Different Picture Across the Midlands
The last five years have produced noticeably different results depending on whether a home is located in the East or West Midlands. In the West Midlands, more than half a million properties — equivalent to 19.6% of homes — increased in value during every year between 2021 and 2026. The picture was quite different in the East Midlands, where only 9.8% of homes achieved consecutive annual increases in value.
| Region / Country | Homes That Increased in Value Every Year | % of Homes Increasing Over 5 Years | Homes That Fell in Value Every Year | % of Homes Decreasing Over 5 Years |
|---|---|---|---|---|
| West Midlands | 502,400 | 19.6% | 1,900 | 0.1% |
| East Midlands | 212,400 | 9.8% | 800 | 0.0% |
Southern England Has Seen Less Consistent Growth
Higher property prices and tighter mortgage affordability have made continuous year-on-year growth much less common across southern England. Where house prices already begin from a substantially higher level, increases in mortgage costs can place considerably more pressure on buyers’ budgets. As a result, only around 1 in 20 homes in Southern England increased in value in every year from 2021. For homeowners in London, the South West, South East and East of England, fewer than 5% of properties recorded a value increase during every one of the five years.
| Region / Country | Homes That Increased in Value Every Year | % of Homes Increasing Over 5 Years | Homes That Fell in Value Every Year | % of Homes Decreasing Over 5 Years |
|---|---|---|---|---|
| London | 178,000 | 4.6% | 30,400 | 0.8% |
| South West | 107,300 | 4.1% | 1,300 | 0.0% |
| South East | 129,400 | 3.2% | 6,100 | 0.2% |
| East of England | 72,600 | 2.6% | 3,700 | 0.1% |
Which Local Areas Have Seen the Most Resilient Growth?
Looking beyond regional averages reveals some interesting local property markets that have performed very differently from the wider national picture. Several towns have recorded an unusually high proportion of homes increasing in value during every year of the five-year period.
| Post Town | Region | Homes Recording Consistent Price Growth Over 5 Years | % of Homes Increasing in Value Each Year |
|---|---|---|---|
| Bonnybridge | Scotland | 3,660 | 60.8% |
| Antrim | Northern Ireland | 10,583 | 60.5% |
| Castleford | Yorkshire & The Humber | 13,395 | 53.6% |
| Wednesbury | West Midlands | 10,940 | 51.3% |
| Dukinfield | North West | 4,817 | 51.1% |
| Tonypandy | Wales | 4,636 | 46.6% |
| Hebburn | North East | 4,881 | 42.6% |
| Hope Valley | East Midlands | 2,019 | 37.5% |
| Dagenham | London | 15,800 | 31.6% |
| Bicester | South East | 7,408 | 27.7% |
| Dursley | South West | 1,387 | 15.1% |
| Witham | East of England | 2,208 | 13.3% |
Dagenham Stands Out Within London
Dagenham provides a particularly interesting example of how affordability can support property values. Homes in this part of East London cost around 25% less than the London average, with a typical price of approximately £400,000 compared with £525,000 across the capital. Despite improvements to transport connections and the wider appeal of East London, Dagenham has remained one of the more affordable parts of the capital. Transport improvements, including the Elizabeth Line and the London Overground extension to Barking Riverside, have also helped strengthen the area’s connectivity. The combination of relatively accessible property prices and good transport links appears to have supported Dagenham’s resilience. Around 31.6% of homes in Dagenham increased in value during every year since 2021, compared with just 4.6% across London as a whole.
Hebburn Also Shows Strong Resilience
Hebburn in the North East provides another example of a comparatively affordable market recording consistent growth. More than 42% of homeowners in the town saw their property’s value increase during each of the past five years. The town benefits from access to the Tyne & Wear Metro, while its average sold property price of approximately £168,146 keeps housing relatively affordable compared with many other parts of the UK.
Bonnybridge Leads the Way
The strongest example of consistent five-year value growth can be found further north in Scotland. In Bonnybridge, an impressive 60.8% of homes increased in value during every year since 2021. The village combines two characteristics that appear repeatedly among resilient property markets: comparatively affordable housing and strong transport connections. The average property price is around £220,000, while both Glasgow and Edinburgh can be reached in less than an hour.
Good Transport Links Alone Do Not Guarantee Growth
Witham in the East of England provides a useful reminder that strong commuter links do not automatically result in consistent property value increases. Despite being the strongest-performing location in its region over the five-year period, only 13.3% of homes in Witham increased in value during every year. The town offers a journey of approximately 45 minutes to London Liverpool Street, giving commuters relatively straightforward access to the capital. However, its average property value of around £320,000 is considerably higher than in some of the country’s more resilient locations. This suggests that affordability remains important. When property prices are already close to the upper end of what local buyers can comfortably afford, values may find it harder to increase consistently — even when transport connections are excellent.
## Understanding What Your Home Could Be Worth
Every property market is different. National figures can provide a useful overall picture, but conditions vary considerably between regions, towns, neighbourhoods and even individual postcodes. Keeping track of your property’s estimated market value can help you make better-informed decisions if you are considering moving home. For example, understanding the current value of your property can help you:
- Estimate the equity in your existing home**, giving you a clearer idea of the budget available for your next move.
- Set a more realistic asking price** if you decide to sell, potentially reducing the likelihood of having to make price reductions later.
- Understand conditions in the area where you want to buy**, including whether values have remained resilient or have recently fallen.
- Strengthen your negotiating position** when buying in a market where property values have softened.
How Much Has Your Property Changed in Value?
The national property market has changed significantly since 2021, but headline figures only tell part of the story. While the average UK home has increased in value by 15.3%, individual homeowners may have experienced considerably higher or lower growth depending on their location, property type and local market conditions. If you are thinking about selling, letting, remortgaging or simply want to understand your current position, obtaining an up-to-date property valuation can provide a much clearer picture of what your home may be worth today.
Key Takeaways
- The typical UK home has gained approximately £36,100 in value since 2021, representing an average increase of around 15.3%.
- Homes in several northern parts of the UK have shown particularly consistent growth, with a higher proportion of properties recording value increases year after year.
- Long-term property values have historically tended to rise, with UK house prices increasing in 25 of the past 30 years. However, homeowners should not assume that property prices will increase every single year.