Over the last 12 months, house prices have been relatively weak in London and much of the South, reflecting a trend that has endured for more than a decade. Structural factors such as elevated stamp duty, higher borrowing costs, and tax burdens have hit the capital the hardest, while more affordable regions have had greater room for growth.
Northern areas, which recovered more slowly following the 2008 financial crisis, are now catching up after the surge in London between 2010 and 2015. The North West has seen up to 90% price growth over the last decade.
Currently, the pattern in house prices mirrors that of 2007–08: house prices in Prime Central London have dropped, whilst other regions catch up. This is typical of the housing cycle, where the most expensive markets peak and stagnate first, followed by a period of regional convergence before the next upswing.
