London's housing market experienced a mixed performance in 2025, with the capital lagging behind many other UK regions in terms of property value growth. According to comprehensive estimates from the property website Zoopla, just over a third of London homes saw any increase in value during the year. This contrasted sharply with the national picture, where around half of the UK's 30 million homes registered gains.
National Trends and Regional Divergence
Across the United Kingdom, approximately 15.2 million homes increased in value by 1% or more during 2025, with the average cash gain standing at £9,900. Some 3.1 million homeowners enjoyed particularly substantial increases of £20,000 or more. However, the market was far from uniform, with around 9.1 million homes losing at least 1% of their value, suffering an average loss of £10,800. A further 5.6 million properties maintained their value within a narrow band of plus or minus 1%.
Zoopla's analysis revealed clear geographical differences in performance. More than 70% of homeowners in northern regions of England, as well as in Scotland and Northern Ireland, recorded value gains. Scotland led the way, with 73% of homes increasing in value by an average of £10,400. The North West followed closely, with 72% of homes seeing gains averaging £9,700.
London's Standout Performer: Waltham Forest
Despite London's overall sluggish performance, where only 35% of homes increased in value, those that did gain enjoyed the highest average cash boosts in the country at £17,400. The borough of Waltham Forest emerged as the capital's undisputed hotspot. Here, 59% of homes climbed in value, with owners benefiting from an impressive average gain of £26,600 – the highest figure for any regional hotspot identified in the research.
Regional Hotspots Across Britain
The research pinpointed specific local authority areas that outperformed within their regions. Renfrewshire in Scotland was identified as the area with the biggest proportion of homes increasing in value, at a remarkable 95%. Other notable regional hotspots included:
- Chorley in the North West: 88% of homes saw gains, averaging £11,500.
- Wrexham in Wales: 79% of homes increased in value, with average gains of £10,400.
- Northumberland in the North East: 78% of homes registered value gains, averaging £8,600.
In contrast, more than 60% of the homes that fell in value over the year were located in southern England. Zoopla attributed this trend to affordability challenges stemming from higher house prices and a wider choice of properties available on the market.
Property Type Performance
The research also indicated that certain property types demonstrated greater resilience to market pressures. Terraced and semi-detached homes were most likely to see consistent value increases, with over half (56%) registering gains. Conversely, flats were the property type most likely to experience value losses of 1% or more, with 50% seeing values decline over the course of 2025.
Expert Commentary on Market Dynamics
Richard Donnell, executive director at Zoopla, commented on the findings: "Our analysis shows how varied changes in home values are across the country and within local areas. The general trend is that most home values continue to increase steadily upwards, especially away from southern England. However, many homes are registering broadly static or lower values as the market continues to adjust to higher mortgage rates and more homes for sale, which is boosting choice for buyers."
Donnell emphasised that this adjustment is particularly prevalent in southern England, adding: "The choppier and more complex market conditions in the south make it critical for sellers to be realistic on pricing in 2026."
Aneisha Beveridge, head of research at Hamptons, provided further context on the longer-term forces at play: "More affordable parts of the Midlands and the North have been outperforming the rest of the country, not just in 2025, but for most of the last decade, supported by lower price points and therefore stronger affordability. By contrast, households in London and the South have felt the impact of higher interest rates most acutely since 2022, which has held back price growth, narrowing the historic North-South divide."
Summary of Regional Performance
The data presents a detailed breakdown of how different regions fared in 2025:
- Northern Ireland: 94% of homes increased, average gain £14,200
- Scotland: 73% increased, average gain £10,400
- North West: 72% increased, average gain £9,700
- North East: 67% increased, average gain £6,600
- Wales: 60% increased, average gain £8,000
- Yorkshire and the Humber: 58% increased, average gain £7,800
- West Midlands: 55% increased, average gain £8,600
- East Midlands: 43% increased, average gain £7,400
- East of England: 41% increased, average gain £11,000
- London: 35% increased, average gain £17,400
- South West: 33% increased, average gain £10,400
- South East: 32% increased, average gain £11,800
Zoopla's monthly automated valuation model continues to track these evolving market trends, providing crucial insights for homeowners, buyers, and sellers navigating the UK's complex property landscape.
