Property Digest Issue 5: Five UK Cities Compared

This issue is a little different. We have gathered the latest official figures for five of the UK’s biggest property markets – London, Birmingham, Manchester, Cardiff and Edinburgh – into one free guide. The national market is quiet, but the five cities are moving at very different speeds.

If you are starting to think about a move, a remortgage or your next investment in 2027, figures like these are a useful starting point for that conversation, wherever in the UK you are looking.

Market at a glance

Bank Rate: 4.00%, raised by the Bank of England on 5 November 2026.
Average 2-year fixed mortgage rate: 5.97% (Moneyfacts, 1 November 2026, market average, not an offer).
Average 5-year fixed mortgage rate: 6.00% (Moneyfacts, 1 November 2026, market average, not an offer).
Nationwide House Price Index: UK annual house price growth +0.5% (Nationwide, October 2026).

The five cities at a glance

London: average price £554,430 (−2.2% on the year); average rent £2,338 a month (+3.5%).
Birmingham: average price £234,867 (+1.5%); average rent £1,106 a month (+3.3%).
Manchester: average price £256,760 (+2.1%); average rent £1,380 a month (+4.6%).
Cardiff: average price £272,443 (+2.1%); average rent £1,179 a month (+3.2%).
Edinburgh: average price £301,313 (+2.8%); average rent £1,411 a month for the wider Lothian area (+1.0%).

House prices: ONS and HM Land Registry, August 2026 (provisional). Rents: ONS, per month, September 2026 (provisional).

Homeowners and buyers

Prices are split by geography. London is the only one of the five with a lower average price than a year earlier (−2.2%, ONS and HM Land Registry, August 2026), while Edinburgh (+2.8%), Manchester (+2.1%) and Cardiff (+2.1%) are higher.
Flats are the soft spot. London flats are down 5.0% on the year, against detached homes up 1.8%.
Borrowing costs have moved up. Moneyfacts’ average two-year fix rose from 5.59% in early September to 5.97% in early November, after the Bank of England raised Bank Rate to 4%. These are market averages, not offers.

Takeaway: If your fixed rate ends in the next six months, it can help to review your options early. Forecasts can change quickly.

Landlords

Rents are still rising, more slowly. Average private rent is £1,380 a month in Manchester (+4.6% on the year), £2,338 in London (+3.5%), £1,106 in Birmingham (+3.3%) and £1,179 in Cardiff (+3.2%), all ONS, September 2026.
The tax on buying differs by nation. England uses Stamp Duty Land Tax, Wales uses Land Transaction Tax and Scotland uses Land and Buildings Transaction Tax, each with its own rates for additional properties.
New this month: an 80% LTV buy-to-let page. We have added a dedicated guide to 80% loan-to-value buy-to-let mortgages on our website, covering criteria and how to apply – useful if you are gearing up for a 2027 purchase.

Takeaway: Run the numbers for each location before you commit. Most buy-to-let mortgages are not regulated by the FCA.

Property investors and developers

Clearer bridging and development finance tools. We have updated our bridging and development finance calculators with clearer explanations and FAQs to help you plan a scheme.
Commercial development finance made clearer. Our commercial development finance page now sets out exactly what we need from you to start an application.

Takeaway: Planning a bridging, development or commercial deal for 2027? Get in touch early so we can map the finance alongside your build programme. Commercial mortgages and some bridging loans are not regulated by the FCA.

Sources

To talk through what this means for you, start your enquiry, contact us or call 0203 971 1234.

Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.

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Property Digest, Issue 5: five UK cities compared