Plymouth recorded the steepest rise in UK house prices in 2025, as buyers increasingly turned to regional cities offering stronger value, lifestyle appeal and regeneration-led growth.
According to new data from Lloyds Banking Group, average property prices in the south-west city rose by 12.6% over the year, the fastest rate anywhere in the country, taking the typical home value to £278,808.
The figures underline how sharply the housing market has fragmented, with regional centres significantly outperforming London and other traditionally dominant locations.
Property professionals say Plymouth’s performance reflects years of sustained investment in infrastructure, housing and amenities.
Nigel Bishop, from buying agency Recoco Property Search, said regeneration projects such as Royal William Yard had transformed the city’s appeal.
“Plymouth has benefited from substantial infrastructural investment, creating new homes alongside improved retail, leisure and cultural amenities,” he said. “That has made it an attractive option for buyers of all ages, increasing competition and pushing prices higher.”
The city’s improving quality-of-life credentials have also helped. Separate research from Confused.com ranked Plymouth third nationally for community and highest overall for life satisfaction and happiness, adding to its pull for movers priced out of larger cities.
Plymouth was not alone in posting strong growth. Lloyds’ data shows Stafford and Wigan also recorded double-digit house price increases in 2025, while Hull entered the top ten growth locations for the first time, with prices rising 6.5%. Hull was recently named a National Geographic “Best of the World” destination for 2026, further boosting its profile.
Across the UK as a whole, average house prices rose by 3.7% year on year. Northern Ireland led regional growth at 5.8%, followed by Scotland and the North West, reflecting the continued affordability-led shift away from the south.
London stood out as the weakest region. Average prices in the capital slipped by 0.1% to £574,514, making it the only part of the UK where values stalled in 2025.
Amanda Bryden, head of mortgages at Lloyds, said the figures highlighted just how localised the market has become.
“We’ve seen significant variation in performance, with some areas rising sharply while others have cooled,” she said.
While London overall struggled, separate analysis from Savills suggests that price falls at the top end of the market have begun to ease since the Budget.
In the final quarter of 2025, values in prime central London fell by 0.9%, an improvement on the 1.8% decline seen in the previous quarter. Prime outer London neighbourhoods dipped by just 0.2%, while prime regional markets fell by 0.6%.
Even so, prices in the capital’s most exclusive postcodes remain around 25% below their 2014 peak, reflecting the cumulative impact of higher stamp duty, changes to non-dom tax rules and weaker international demand.
Savills’ director of research, Frances McDonald, said confidence among buyers had improved modestly in the £2m-plus market, particularly in outer prime London, but demand in the most expensive central areas remained thin.
“Much of the impact of tax changes was already priced in after late-summer speculation,” she said. “However, it will take time for the market to fully absorb these changes, with moderate falls likely to continue in the new year.”
The contrast between Plymouth’s double-digit growth and London’s stagnation highlights a decisive shift in buyer behaviour. With affordability, lifestyle and regeneration now carrying greater weight than prestige alone, regional cities and towns are increasingly setting the pace, and reshaping the UK housing map as 2026 approaches.
