Average UK house prices rose 1.2% to £268,000 in the 12 months to February 2026, according to the UK House Price Index published by HM Land Registry. That headline figure hides a regional split that matters more than the national average.
Yorkshire and the Humber grew fastest at 3.9%. London prices fell 3.3%. The gap between the cheapest and most expensive regions remains wide, but the performance gap has inverted: the cheapest areas are growing while the most expensive are falling.
Regional breakdown (year to February 2026)
| Region | Average price | Annual change |
|---|---|---|
| North East | ~£162,000 | +2.7% |
| North West | ~£215,000 | +1.8% |
| Yorkshire and the Humber | ~£210,000 | +3.9% |
| East Midlands | ~£245,000 | +1.5% |
| West Midlands | ~£250,000 | +1.2% |
| East of England | ~£330,000 | -0.5% |
| London | £542,000 | -3.3% |
| South East | ~£380,000 | -1.2% |
| South West | ~£310,000 | -0.7% |
| Wales | £210,000 | +2.5% |
| Scotland | £187,000 | +2.3% |
| Northern Ireland | £196,000 | +7.5% (Q4 2025) |
Source: ONS and GOV.UK HPI data. Estimates rounded. Northern Ireland reported quarterly.
What the numbers mean for investors
London's 3.3% annual fall is the seventh consecutive month of decline. The Zoopla House Price Index for April 2026 reports that homes in London take six days longer to sell than a year ago, with first-time buyer stamp duty costs (following the return to standard thresholds) suppressing demand in the capital.
The North outperforming the South is not new, but the gap is widening. For BTL investors, this creates a situation where the highest yields and the strongest capital growth are in the same regions (North East, Yorkshire, North West), while London and the South East offer neither.
Transaction volumes
Residential transactions at £40,000+ totalled 102,000 in February 2026 on a seasonally adjusted basis, 5.6% lower than February 2025. The market is slower than a year ago, though month-on-month volumes rose 5.6% from January 2026.
Lower transaction volumes mean fewer comparables for valuations, which can affect refinancing and BRRRR strategies. A thin market makes RICS valuations more conservative.
Mortgage approvals
According to Bank of England data, mortgage approvals for house purchases in March 2026 stood at 63,531, down 1% year-on-year but up 1% from February. The market is steady rather than booming.
Affordability
The UK house price to earnings ratio sits at approximately 8 to 9 times average earnings nationally. In London, it exceeds 12 times. The North East, at around 5.7 times, is the most affordable region.
For investors, affordability matters because it affects tenant demand and rental growth. In areas where buying is unaffordable, more households rent, which supports rental demand and allows landlords to achieve sustainable yields.
Sources
- GOV.UK, "UK House Price Index for February 2026". https://www.gov.uk/government/news/uk-house-price-index-for-february-2026 [Accessed 6 May 2026]
- ONS, "Private rent and house prices, UK: April 2026". https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/april2026 [Accessed 6 May 2026]
- Zoopla, "House Price Index: April 2026". https://www.zoopla.co.uk/discover/property-news/house-price-index/ [Accessed 6 May 2026]