UK house prices fluctuate dramatically with southern regions hit hardest

In the UK, the housing market is undergoing diverse trends as of July 2025, according to Zoopla's latest data. While certain regions, particularly Northern Ireland, demonstrate strong resilience with an annual price increase of 6.1%, including a notable 7.8% rise in Belfast, others like Truro, Torquay, and Exeter are grappling with price declines ranging from 1.1% to 1.3%. This disparity highlights the variations in buyer demand and market confidence across different areas, influenced by local economic conditions and housing supply. Additionally, the improved activity in the market is attributed to a rise in buyer demand at 11% compared to the previous year and an 8% increase in agreed sales. Reports indicate that recent changes to lenders’ mortgage affordability assessments have contributed positively to this increased market activity. However, looming higher stamp duty costs, particularly in England and Northern Ireland due to the withdrawal of temporary reliefs in April, are perceived as obstacles to sustained house price inflation, affecting buyers’ offers significantly. Zoopla's house price forecast for 2025 has recently been revised downward, reflecting a halving of previous predictions as buyers are now cautious, factoring in the raised stamp duty costs into their bids. The ongoing shifts in buyer behaviors are emerging as sellers list their properties more frequently, signaling a dynamic market response influenced by external financial factors such as mortgage rates set by the Bank of England. As some buyers pause their search in anticipation of potential interest rate cuts, the sentiment of uncertainty persists. In summary, the disparities among housing price movements across various UK regions point to a complex relationship between market dynamics and external financial influences. While Northern Ireland is currently enjoying price growth, areas in southern England are feeling the pressure of increased costs and declining buyer sentiment, which could have longer-term implications on the property market overall.