Annual UK house price growth picked up in June, says Nationwide

Aneisha Beveridge, research director at Connells Group, said: “The UK’s housing market remains a tale of two halves. House prices across much of Northern Britain continue to outperform, supported by stronger affordability and lower borrowing costs relative to incomes.

“Meanwhile, growth across London and many Southern markets remains subdued. These are the parts of the country where higher mortgage rates bite hardest, stretching affordability and making would-be movers more cautious.

“In more expensive markets, households are often weighing up not just higher mortgage costs but also the wider costs of moving, including substantial Stamp Duty bills, which means many are only choosing to move when they need to.

“Meanwhile, across much of Northern Britain, affordability is less stretched, making it easier for existing homeowners to trade up. The result is a market that remains more fluid, supporting both higher levels of activity and stronger house price growth.

“It’s a pattern we’ve seen for much of the last decade, and one that continues to shape the housing market today.”