Plymouth, a city in the south-west of England, has seen the steepest rise in house prices across the UK in 2025, according to a new survey. The average property price in the city rose by an impressive 12.6%, reaching £278,808, significantly outpacing the national average increase of 3.7%.
The data, compiled by Lloyds Banking Group, reveals that other areas such as Stafford and Wigan also experienced double-digit growth in house prices over the past year. This surge in property values has been attributed to substantial infrastructure investments in Plymouth, including the development of the Royal William Yard, which has created a number of new homes.
Nigel Bishop, from the buying agency Recoco Property Search, commented on the city’s appeal, stating that “Plymouth has benefited from substantial infrastructural investments such as Royal William Yard, which created a number of new homes. The city’s improved retail, sporting, culinary and general lifestyle amenities also position Plymouth as an attractive option for house hunters of all ages.”
The research from Confused.com found that Plymouth ranked third on a list of the best cities for community, scoring the highest for overall life satisfaction at 7.8 out of 10 and the highest for happiness.
While the national housing market saw an average increase of 3.7%, regional variations were significant. Northern Ireland led the way with 5.8% growth, followed by Scotland and the north-west. In contrast, London was the only region where house prices stalled, with a 0.1% dip to an average of £574,514 – still the most expensive in the UK.
Amanda Bryden, the head of mortgages at Lloyds, acknowledged the localised nature of the housing market, stating, “We’ve seen significant changes in property values, with some areas rising sharply while others have cooled.”
Separate research from Savills also suggests that the top end of the London market has seen a slowdown in price falls, with values in prime central London declining by 0.9% in the final quarter of 2025, an improvement from the 1.8% drop in the previous quarter. This is attributed to changes in the taxation of high-value homes, which proved “better than feared.”
Despite these signs of stabilisation, prices in London’s most traditional prime neighbourhoods have lost a quarter of their value since 2014, with recent measures such as bringing global assets of long-term resident non-domiciles into UK inheritance tax and higher stamp duty surcharges on second homes dampening demand and putting downward pressure on prices.
As the housing market continues to evolve, the contrast between Plymouth’s soaring prices and the cooling of the London market highlights the diverse regional trends that are shaping the UK’s property landscape.