Fewer than one in seven UK homes increased in value during every year of the past five years as higher mortgage rates placed greater pressure on more expensive housing markets, according to Zoopla.
The property portal found that 14% of homes – equivalent to 4.2m properties – recorded uninterrupted annual price growth between June 2021 and June 2026.
Despite the lack of consistent annual growth, the average UK property increased in value by 15.3% over the full five-year period, adding an estimated £36,100.
The period coincided with mortgage rates rising from the ultra-low levels available at the end of 2021 to typical rates of between 4% and 5%. Zoopla said the effect had been greater in areas with higher house prices, where affordability is more sensitive to borrowing costs.
REGIONAL DIFFERENCES
Northern Ireland proved the most resilient market, with 37.9% of homes increasing in value during each of the five years.
It was followed by the North West at 29.7%, Scotland at 22.6%, Yorkshire and the Humber at 22% and the North East at 20.5%.
By contrast, only 4.6% of London homes recorded uninterrupted growth, falling to 4.1% in the South West, 3.2% in the South East and 2.6% in the East of England.
Bonnybridge in Scotland had the highest proportion of consistently appreciating homes at 60.8%, narrowly ahead of Antrim in Northern Ireland at 60.5%. Castleford followed at 53.6%.
Persistent declines were rare, with just 0.2% of UK homes – around 56,600 properties – falling in value during every year of the period. Aberdeen was a notable exception, where 5.9% of homes experienced five consecutive annual falls.
RATE CHANGE
Richard Donnell (main picture, inset), executive director at Zoopla, said: “The last five years have seen local housing markets adjust differently to the impact of moving from record-low borrowing costs to higher rates today.
“Housing markets across Northern Ireland, the North and Scotland have seen homeowners keep building equity in their home because the local housing market was less exposed to the affordability pressures that higher mortgage rates bring.
“For homeowners, this analysis highlights why you cannot rely on national or regional averages when assessing what your home is worth.
“Trends vary by property type and at a hyper-local level. Understanding whether your local area has consistently built equity or flatlined is essential information if you want to understand what you can afford to buy next or you are actively planning your next move.”