The price of a home in every UK region and where you can buy for just £184,318

London remains the most expensive place to buy in the UK (Picture: Shutterstock / William Barton) London house prices have recorded their biggest annual fall in three years, according to a new index from Lloyds Bank. Despite remaining significantly more expensive than other parts of the UK, the capital has experienced the sharpest drop in property values of any region, falling by 3.1% in the past year. Across the UK, house prices fell by an average of 1.2% in the past 12 months from last October, bringing the average property price to £296,285. London is closely followed by the South East and South West, which both went down by 2.4%. The average property price in London now stands at £524,892 (still the highest in the UK) while the lowest is the North East at £184,318 (which rose by 2%). This leaves a £340,574 gap between the UK’s most expensive and cheapest regions. London house prices cost an average of £524,892, down 3.1% since last year (Picture: Shutterstock / Alexey Fedorenko) The East Midlands and West Midlands saw the smallest drop in property prices, falling only 0.3%, while some areas saw property values increase, such as Scotland (2.8%), Northern Ireland (4.4%), the North West (2.2%) and the North East (2%). Average house prices across the UK (with regional average change over the past 12 months) Ready to start your homebuying journey? You can access completely fee-free mortgage advice with London & Country (L&C) Mortgages, a partner of Metro. Customers benefit from: – Award winning service from the UK’s leading mortgage broker – Expert advisors on hand 7 days a week – Access to 1000s of mortgage deals from across the market Unlike many mortgage brokers, L&C won’t charge you a fee for their advice. Find out how much you could borrow online 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. Figures are based on the latest three months of approved mortgage transaction data, sorted from most to least expensive. London: £524,892 (-3.1%) South East: £379,258 (-2.4%) Eastern England: £327,241 (-2.3%) South West: £298,057 (-2.4%) West Midlands: £261,656 (+0.3%) North West: £249,916 (+2.2%) East Midlands: £244,426 (-0.3%) Wales: £233,116 (+1.6%) Northern Ireland: £228,708 (+4.4%) Scotland: £222,667 (+2.8%) Yorkshire and the Humber: £214,485 (-1.0%) North East: £184,318 (+2.0%) Why are house prices falling? ‘Housing demand is currently being tested by a challenging economic backdrop,’ Andrew Asaam, mortgages director ​at Lloyds, explained. Ask Metro Use AI to go deeper into the stories you care about – powered by Metro and trusted publications. ‘Renewed inflationary pressures, driven in part by the conflict ​in the Middle East, are keeping borrowing costs high and adding to the ‌squeeze ⁠on household finances, making some buyers understandably more cautious.’ But he notes that ‘it’s important to put October’s fall in context. House prices have changed relatively little over the past couple of years, as the market has gradually adjusted to higher interest rates. ‘The recent rise in energy and other household costs have added to the pressure on buyers, so some adjustment in prices is not surprising.’ Properties in the North West of England, which includes Cheshire, Cumbria, Greater Manchester, Lancashire and Merseyside, saw a 2.2% increase (Picture: Shutterstock / John B Hewitt) What does this mean for the future? ‘Looking ahead, conditions are likely to remain subdued in the near term, but we don’t expect this to lead to a sustained period of falling house prices,’ Andrew explains. ‘With wages continuing to rise faster than property prices, the gap between earnings and house prices should gradually narrow, helping affordability to improve over time.’ Around 87% of outstanding homeowner mortgages are on fixed-rate deals. However, roughly 2.3 million of these mortgages are due to expire in 2027, according to UK Finance. Deals of the Day The Orlando holiday deal Disney fans shouldn't miss We're adding this discounted NEOM gift set straight to basket Want an LED face mask for less? This Black Friday deal could save you hundreds This teeth whitening sale could save you up to 64% before Black Friday The best Black Friday sleep deals to upgrade your bedroom with Simba’s 33% off sale This comes as interest rates rose this month for the first time since August 2023. You can read Metro’s explainer on what this means for you. More property news from Metro Do you have a story you’d like to share? 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