Northern Ireland remains the UK’s standout property market, with annual house price growth of 9.6% in Q3, according to the latest Nationwide House Price Index.
The region’s performance far outstrips that of any other part of the country and echoes trends seen across Ireland’s border counties, where demand has remained resilient despite a broader housing slowdown.
Elsewhere in the UK, performance was mixed. Wales recorded a modest uptick to 3.0% annual growth (from 2.6% in Q2), while Scotland saw growth slow to 2.9% (down from 4.5%).
In England, price momentum weakened again, with average annual growth of 1.6%, compared with 2.5% in the previous quarter.
Northern England — including the North, North West, Yorkshire & The Humber, East Midlands and West Midlands — outperformed the South, with average prices up 3.4% year on year. The North of England led the way, posting growth of 5.1%, driven by relative affordability, regional regeneration, and continuing demand from first-time buyers and investors seeking better yields.
By contrast, Southern England — encompassing the South West, Outer South East, Outer Metropolitan, London and East Anglia — saw growth ease to just 0.7%.
The Outer South East emerged as the weakest performer in the country, with prices up just 0.3%, a sharp drop from 2.6% the previous quarter. Analysts attribute this slowdown to affordability pressures, with higher borrowing costs weighing on demand in commuter towns and outer metropolitan areas.
Semi-detached homes lead property type growth
Nationwide’s data by property type highlights a notable divergence in performance. Semi-detached houses recorded the strongest annual growth, with prices up 3.4% over the past 12 months. Detached and terraced houses also rose by 2.5% and 2.4%, respectively.
However, flats slipped 0.3% year on year — the only property type to record a decline. The data underlines a longer-term trend: flats have underperformed significantly over the past decade, with prices rising just 20% since 2015, less than half the increase seen in terraced houses.
Analysts suggest several factors are driving this divergence. Hybrid working patterns have reduced the appeal of city-centre apartments, while lifestyle preferences and space requirements continue to favour family homes. Meanwhile, higher service charges and cladding concerns in some developments have dampened buyer confidence in the flat sector.
Nationwide’s monthly index shows the housing market entering autumn on a relatively stable footing. Annual UK house price growth held steady at 2.2% in September, marginally stronger than the 2.1% recorded in August.
On a monthly basis, prices rose 0.5%, after adjusting for seasonal factors. Mortgage approvals — a key indicator of housing demand — have hovered at around 65,000 per month, roughly in line with pre-pandemic averages, despite the higher interest rate environment.
“Despite ongoing uncertainties in the global economy, underlying conditions for potential homebuyers in the UK remain supportive,” said Robert Gardner, Nationwide’s Chief Economist.
“Unemployment is low, earnings are rising at a healthy pace, household balance sheets are strong, and borrowing costs are likely to moderate further if Bank Rate is lowered in the coming quarters. Providing the broader economic recovery is maintained, housing market activity is likely to strengthen gradually in the quarters ahead.”
For property investors, the Q3 data reinforces a long-term trend: Northern regions continue to offer stronger returns and growth momentum than southern markets. Northern Ireland’s double-digit surge and the North of England’s 5.1% rise contrast sharply with the near-stagnation in southern commuter zones.
Meanwhile, property type data underscores continued demand for semi-detached and family homes, with flats and high-density urban stock facing weaker prospects in the short term.
While the market remains subdued by historic standards, stability in prices and borrowing conditions suggests that the UK housing market may be approaching a turning point — one defined by regional divergence rather than uniform recovery.
