The South East has overtaken London as the region with the biggest house price falls, according to Halifax.The mortgage lender revealed average home values in the region are down 2.1 per cent annually to £382,704, while London saw average values fall 1.5 per cent to £534,375.Meanwhile, the data shows values in the North are rising. Average house prices in Scotland are up 3.8 per cent in the past 12 months, with the typical home there now fetching £222,650. The North East saw prices rise 3.1 per cent over the year to £181,703, while average prices in the North West are up 3 per cent, with the average home now costing £248,304.Overall, house prices remain at a standstill when looking at the country as a whole.The price of the average property fell 0.1 per cent in May, following a similar drop in April. They also fell in March, marking the first time prices have dropped for three months in a row since 2023.The typical British home fetches £298,806, compared with £299,251 in April, the analysis shows. Standstill: Across the country the price of a home has barely moved
The average property is worth around £1,500 more than it was this time last year, up from £297,322 in May 2025.Amanda Bryden, head of mortgages at Halifax, attributes the current trend to uncertainty linked to developments in the Middle East. 'Despite recent cuts to mortgage rates, higher inflation expectations have kept borrowing costs above the level seen at the start of the year, continuing to stretch affordability for many buyers and temper demand,' says Bryden.'Looking ahead, borrowing costs and consumer confidence are likely to continue shaping activity in the coming months, with house prices expected to be broadly stable while interest rates stay elevated.'She adds: 'The housing market remains closely tied to wider global developments, with a return to sustained house price growth dependent on an improvement in the inflation outlook and a fall in mortgage costs.'Jonathan Hopper, chief executive of buying agents Garrington Property Finders says that the south of the country is awash with too many homes for sale and not enough buyers to match it.'Supply is at an all-time high after April and May saw the traditional post-Easter surge in new listings, and in many areas there are too few serious buyers chasing too many homes for sale - and this imbalance is driving down prices,' he says.'South East England has overtaken London to claim the unwanted honour of the sharpest decline in prices.'However, the supply and demand scales are more balanced in northern England and Scotland, according to Hopper - hence the price gains.Nevertheless, Hopper thinks that the market is in 'reset territory' across large swathes of the country - a good time to be a buyer, but a bad time to be a seller.'With so many sellers jostling for buyers’ attention, this is unquestionably a buyer’s market,' he says. 'With asking prices softening, and pragmatic sellers more open than usual to price reductions, there are some fantastic opportunities for committed buyers.'For buyers who calculate that the extra value offered by lower purchase prices far outweighs the impact of higher mortgage interest rates, this has become a compelling time to buy.'He adds: 'In the coming months, we expect the market to remain fragile and meandering, rather than move decisively up or down. 'The idea of a single UK property market is becoming less useful by the month. 'For buyers and sellers trying to make sense of it, the answer will depend far less on the national index and far more on the street, the stock and the strength of the local buyer pool.'Best mortgage rates and how to find them Mortgage rates have shot up again due to inflation triggered by the conflict with Iran reversing hopes that the Bank of England would cut rates. This means those remortgaging or buying a home face higher costs.That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord.This is Money's partner L&C can help you with its fee-free mortgage service.> Compare mortgage rates> Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C.This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit.You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes.If you’re ready to find your next mortgage, why not use This is Money and L&C’s online Mortgage Finder. It will search 1,000’s of deals from more than 90 different lenders to discover the best deal for you.> Find your best mortgage deal with This is Money and L&C Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
