Yorkshire house prices are rising faster than UK average, but mortgage costs and tax pressures create challenges
Yorkshire’s housing market is continuing to outperform the national average, with prices rising faster than elsewhere in the country, but the Budget has offered a mixed picture for buyers, sellers and landlords facing higher borrowing costs and increased taxation.
House prices across Yorkshire and the Humber rose by 1.3 per cent in the year to September, compared with 0.8 per cent nationally, according to the latest figures from Zoopla. The figures suggest the region is holding up relatively well despite a more challenging market.
Richard Donnell, executive director at Zoopla, said: “Yorkshire’s housing market continues to outpace the national average, with regional house prices up 1.3 per cent over the past year, compared to a UK average of 0.8 per cent. This is true across key cities in the region Sheffield (1.5 per cent) and Leeds (one per cent), which appear to be sustaining steady, positive growth.
“Supported by better affordability, homes in the region are finding buyers in just 42 days - quicker than the UK average of 44 days and unchanged from last year’s regional average.”
However, the wider market is showing signs of caution. Rightmove’s latest figures show the average asking price of a home coming to market rose by £3,575 in October to £371,015, although it remains 0.1 per cent lower than a year ago.
The number of potential buyers contacting estate agents was down nine per cent year-on-year, while the number of homes for sale was at its highest level for this time of year since 2014.
Colleen Babcock, property expert at Rightmove, said: “The rapid rise in mortgage rates is really beginning to hit buyers’ budgets.”
The main housing announcement in last month’s Budget was the Your First Home scheme, which will help eligible first-time buyers in England purchasing a new-build property from a participating developer.
Buyers will be able to put down a deposit of between 2.5 and 15 per cent, with a government-backed equity loan of 20 per cent. The loan will be interest-free for the first five years, with applications expected to open in February 2027. Income and regional property price caps will apply.
Debbie Whittingham, regional sales director at Miller Homes Yorkshire, also welcomed the announcement. She said: “Whilst the finer details are yet to be confirmed, this is a step in the right direction for first time buyers to be able to get onto the property ladder in their local communities.”
Other announcements included a £100 energy payment for eligible households in council tax bands A to D and the confirmation of an annual surcharge on properties in England valued at £2m or more, from April 2028.
Land Registry figures show 86 homes in Yorkshire and the Humber sold for at least £2m between 2023 and 2025.
There was disappointment that the Budget did not include wider changes to stamp duty, which many in the industry had hoped would encourage more people to move.
Jonathan Morgan, director of Leeds-based Zenko City Living, said: “A lot had been said about the potential for the budget to send public confidence spiralling but it's fair to say that it was something of a damp squib. It would have been good to see more done around stamp duty initiatives, for example, but it was not to be.”
He also criticised the further two percentage point increase in tax on landlords’ rental income, due from April 2027. “It was highly frustrating to see landlords singled out for an increase in taxation of two per cent on rental income.”
He added: “Further moves to squeeze landlords seem entirely at odds with the so-called housing crisis which successive Governments are quick to shout about.”
David Mear, managing director of Linley & Simpson, which has offices across Yorkshire, said the relatively measured Budget provided some certainty for buyers and sellers, particularly those considering their next move.
He said: “Supporting more people onto the property ladder is positive for the health of the wider housing market and should help unlock activity across the chain.”
However, he warned that higher taxation could prompt some landlords to reconsider their investments.
Looking ahead, Connells Group forecasts house price growth of 1.5 per cent across Yorkshire and the Humber in 2026, rising to two per cent in 2027 and three per cent in 2028.
For now, Richard Donnell, of Zoopla, said there was still demand from buyers, but added that sellers needed to be realistic about their asking prices. “There is still demand to buy homes, and those that are well priced and presented are selling just as quickly as last year,” he said.