The Halifax mortgage report released in May revealed that the South East now suffers the steepest annual house‑price fall in the UK, slipping 2.1% to £382,704. London follows with a 1.5% drop to £534,375, while northern regions posted modest gains.

South East’s 2.1% slide eclipses London’s 1.5% dip

According to Halifax, the average home in the South East fell to £382,704, a 2.1% year‑on‑year decline, making it the region with the sharpest price fall. london’s market, meanwhile, slipped 1.5% to £534,375, still higher in absolute terms but losing ground relative to the South East.

North‑East and Scotland post 3%‑plus gains

Halifax data shows the North East saw prices rise 3.1% to £181,703, while Scotland recorded a 3.8% increase to £222,650. The North West also posted a 3% rise , with the typical home now worth £248,304 , highlighting a clear regional divide.

Supply glut in the South drives price pressure

Jonathan Hopper, CEO of Garrington Property Finders, attributes the South’s decline to an “all‑time high” of listings after the post‑Easter surge, leaving too many homes for too few serious buyers. He says the imbalance is forcing sellers to lower prices, turning the market into a buyer’s haven.

Affordability squeezed by stubborn mortgage rates

Amanda Bryden, head of mortgages at Halifax, links the broader slowdown to lingering uncertainty from Middle‑East tensions and higher inflation expectations that keep borrowing costs above early‑year levels. Even with recent mortgage‑rate cuts, affordability remains straied, dampening demand.

What’s still unclear about the regional split?

Key unknowns include whether the South’s oversupply will correct itself and how quickly mortgage rates might fall if inflation eases. The report does not provide data on buyer sentiment in the South versus the North, leaving a gap in understanding the durability of the current buyer’s market.