Analysis reveals London's property market grew by just 7% in a decade, while Midlands and Northern cities like Wolverhampton and Manchester saw 63% growth, highlighting a persistent north-south divide driven by affordability and remote work trends.
London has recorded the slowest house price growth among British cities over the past decade, as soaring prices have severely strained buyer affordability. According to analysis by Rightmove , which examined millions of supply, demand, and pricing data points, asking prices in the capital increased by only 7 percent between 2016 and 2026.
This modest growth occurred despite a temporary surge during the pandemic. While the average asking price for a typical home in London remains the highest in the UK at £687,080, this represents a gain of just £47,487 over ten years; prices were £639,593 in 2016. In stark contrast, cities across the Midlands, Northern England, and Wales experienced substantial price increases.
Wolverhampton and Manchester both saw 63 percent growth, with typical homes now costing £229,094 and £261,891 respectively, up from £140,548 and £160,422 a decade earlier. Newport, Nottingham, Wakefield, Salford, and Bradford all recorded gains exceeding 50 percent. Stoke-on-Trent, Doncaster, and Swansea completed the top ten for price growth. Even with these rapid rises, all of these cities maintain average asking prices below £270,000, which is more than £100,000 less than the UK-wide average of £376,191.
That national figure itself has recently dipped, falling by £2,113 or 0.6 percent last month-the largest monthly decline in 14 years-from a record high of £379,517 in May. Colleen Babcock, Rightmove's property expert, explained that affordability has been the central theme shaping these divergent trends. Areas with lower starting price points had significantly more room for growth, contributing to a widening north-south divide in price appreciation over the last decade.
She noted that greater flexibility from hybrid and remote working continues to influence residential choices, supporting demand in cities that offer better value and a different lifestyle balance. The premium on London property has inherently limited further price expansion.
Meanwhile, Mary-Lou Press, president of estate agent body NAEA Propertymark, reaffirmed that affordability has become one of the strongest drivers of house price growth over the past decade. Cities like Manchester, Wolverhampton, and Nottingham have thrived due to their lower entry prices, whereas high-value markets like London face natural affordability constraints. The data also underscores a broader shift away from a London-centric market, with regional cities across the North and Midlands emerging as major growth centres.
The broader housing market is currently tilted toward buyers due to high inventory levels and subdued demand. Economic forecaster the Item Club recently issued a gloomy report, projecting that house prices will rise by only 1.1 percent this year and 0.6 percent in 2027, following a 2.7 percent increase in 2025. Rising mortgage costs and higher unemployment are expected to further weigh on housing demand.
Mortgage rates have also soared recently, driven by inflation expectations following geopolitical tensions, dashing hopes for near-term interest rate cuts. For borrowers needing a mortgage-whether buying a home or remortgaging-experts advise exploring options promptly. Borrowers can often lock in a new fixed-rate deal six to nine months in advance, sometimes without upfront fees, though any added fees will accrue interest over the loan term. Homebuyers should secure rates early to understand their monthly payment obligations.
Using fee-free brokers and comparison tools can help navigate the current landscape of over 90 lenders to find suitable deals
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