House Prices Rise Across England and Wales

New figures from Garrington Property Finders indicate that average property prices in England and Wales increased by 1.4% and 1.5% respectively. This growth contributes to a narrowing of the long-standing North-South divide in house prices, a development that holds significance for landlords and letting agents monitoring regional market dynamics.

Strong Growth in Northern Regions

The data highlights particularly strong house price growth in northern England. The North East experienced a sharp 5% increase, while both the North West and Yorkshire and the Humber saw rises of 3.1%. In contrast, London recorded a 2.4% decline in property values. This shift reflects changing demand patterns and affordability considerations across regions.

Marple in Greater Manchester was identified as the best place to live in England and Wales for 2026, with house prices rising by 7.6%. Rawdon in West Yorkshire and St Albans in Hertfordshire followed, both seeing price increases of 3.2%. These locations offer landlords potential opportunities in areas combining strong price growth with desirable living conditions.

Mortgage Affordability Improves

Jonathan Hopper, CEO of Garrington Property Finders, attributed part of the market movement to the Bank of England base rate standing at 3.75%, which has made mortgages more affordable. He explained: “The property maps of England and Wales were redrawn in 2025 as prices headed in opposite directions in different parts of the country. The north-south divide narrowed slightly as prices rose steadily in more affordable northern areas, and fell in the most expensive parts of London and the south.”

Hopper added: “Many buyers paused their moving plans in the latter part of 2025, but our team of experts across England and Wales is now seeing a surge in interest from people ready to make a move in 2026. With the Bank of England base rate back below 4%, mortgages have become more affordable and this gives would-be buyers greater freedom to pick a property that’s perfect for them.”

Implications for Landlords and Agents

The narrowing price gap and improved mortgage affordability suggest a potential shift in rental demand patterns. Landlords in northern regions may benefit from increased interest as these areas become more attractive to buyers and renters alike. Conversely, some southern and London markets may experience slower growth or adjustment periods.

Understanding these trends can help letting agents advise clients on investment opportunities and rental pricing strategies, especially in emerging hotspots like Marple and Rawdon. The combination of rising prices and affordability improvements could stimulate market activity, influencing tenant demand and landlord returns.