Regional Winners and Losers: Inside the May 2026 House Price Index

The headline splits

HM Land Registry's UK House Price Index for May 2026 (released 22 July) shows a market pulling in different directions. The national picture — average price £271,000, annual growth +2.7% — hides genuinely divergent regional stories. See our July 2026 market update for the full national context.

The winners

North East: +5.9% annual growth

The strongest-performing region in the UK. Affordability is the driver — homes here still start from a lower base, so a modest cash increase reads as a big percentage move. If you're selling in the North East, comparable evidence from your specific town matters more than the regional average; Newcastle, Middlesbrough and County Durham each have their own micro-market. Our local seller data pages break down individual towns.

Scotland: +4.4% (average £196,000)

Scotland's average price is around 28% below the UK average, and demand continues to build. Note that Scottish property law is different — offers over pricing, Home Reports, single survey — so the selling process itself needs a Scotland-specific plan.

England overall: +2.3% (average £292,000)

Broadly in line with the national trend, but with big variation inside it. The Midlands and North West are running above 2.3%, while London is dragging the England average down.

The loser

London: -1.2% (average £545,000)

The only UK region with prices falling year-on-year. The reasons are familiar — very high absolute prices, buyers most sensitive to mortgage rate changes, and a slower return-to-office pattern than initially expected. For London sellers, this is the environment where pricing discipline matters most. Our 2026 pricing guide covers the three-source method.

What the regional split means for pricing

• In rising regions, anchor to sold prices from the last 3 months, not 6. In a market moving +5% a year, six-month-old comparables under-price your home. Use fresh data.
• In flat regions (most of England), use 6-month sold prices as your baseline and expect offers slightly below asking. Don't over-anchor to peak-2024 numbers.
• In London, assume the direction of price movement is down, and price to sell rather than to test. A price reduction on a London listing in 2026 signals distress; getting it right on day one is worth real money.

The fee maths in each region

Estate agent commission is charged as a percentage — averaging 1.42% inc. VAT (Rightmove, 2025) — which means the higher the regional price, the more the fee bill. On the Scottish average £196,000: roughly £2,780. On the England average £292,000: roughly £4,150. On the London average £545,000: roughly £7,740. A £99/month flat fee is the same in every region — the equity protection is biggest exactly where the market is toughest. Full breakdown in our estate agent fees guide.

The takeaway

National averages are useful for headlines, not for pricing your home. Whatever region you're in, the winning strategy in 2026 is the same: work from Land Registry sold prices on your street, cross-check against current portal listings, and don't pay a percentage fee to a market that no longer supports it. For the wider picture see the July 2026 market update; for the buyer-side view see what buyers respond to in 2026.