Only about one in seven homes across the UK has consistently increased annually in value from June 2022 onwards, according to estimates by a property website.
Zoopla analysed valuations of individual homes, starting in June 2021 and ending in June 2026.
It specifically looked at the month of June, analysing whether valuations had increased that month compared with the month of June the year before.
For example, covering the first year, Zoopla looked at whether the valuation of a home in June 2022 was higher than in June 2021.
Zoopla estimated that just 14% of UK homes – equating to just over four million properties – had increased in value annually each June from June 2022 to June 2026.
While some homes will not have consistently increased in value each year, Zoopla said its house price index indicates the average UK home value has increased by 15.3% over the past five years, equating to an average of £36,100 per home.
Zoopla said that rises in mortgage rates, affecting borrowers’ costs, will have had an impact over the five-year period.
Richard Donnell, executive director at Zoopla, said: “Housing markets across Northern Ireland, the North and Scotland have seen homeowners keep building equity in their home because the local housing market was less exposed to the affordability pressures that higher mortgage rates bring.
“For homeowners, this analysis highlights why you cannot rely on national or regional averages when assessing what your home is worth.
“Trends vary by property type and at a hyper local level.
“Understanding whether your local area has consistently built equity or flatlined is essential information, if you want to understand what you can afford to buy next or you are actively planning your next move.”
Aneisha Beveridge, research director at Connells Group, said: “The UK’s housing market has become increasingly fragmented over the last five years.
“The strongest performance has generally come from more affordable markets across the north of England, Scotland and Northern Ireland, where lower price points have helped insulate buyers from higher mortgage rates and supported continued demand.
“At the same time, the pandemic sparked a surge in demand for larger homes in commutable areas outside London, driving strong price growth across much of the south between 2020 and 2022.
“However, as mortgage rates rose and stamp duty incentives were withdrawn, that momentum faded and price growth in many of these markets has since come under pressure.
“Despite these headwinds, our research shows the middle market is still moving.
