Britain’s property market is splitting in two. Here are the Britons paying the price

Head south, however, and the picture changes. London house prices rose by less than one per cent, while prices in the South East and South West fell.

Rising interest rates and a higher minimum wage are both factors.

Buyers can only borrow so much, and affordability varies dramatically across the country.

A three-bed semi in Bolton or Sunderland costs a fraction of one in Surrey, while local wages often stretch further.

Where house prices already consume most of a buyer’s income, saving enough for a deposit can feel impossible.

The bigger story in the data, though, is flats.

Across the UK, house prices rose by 1.3 per cent while flat prices fell by 1.4 per cent.

Flat prices in the East Midlands dropped by about 3 per cent, in London by 2.7 per cent and in Wales by 2.5 per cent.

So why are buyers shunning flats in particular?

First, leasehold. Service charges keep climbing, often leaving residents feeling they have little control over the costs.

Buyers have learned to ask difficult questions, and many walk away when they hear the answers.

Second, cladding. Years after Grenfell, some flat owners still struggle to sell or remortgage their properties.

Third, landlords are selling up. Tax changes and tougher rental rules have pushed many small investors out of the market.

These landlords owned a significant share of England’s flats.

As they sell, too few buyers are stepping in to replace them. Supply is rising just as demand is falling.

Fourth, working from home. A garden and a spare room that can double as an office now matter more to many buyers than a short walk to the station.

Will this continue? For flats, I think so, at least over the next year or two. Leasehold reform has been promised for years but is yet to deliver the changes many buyers and owners need.

Landlords continue to leave the market for sound legal and financial reasons, and that trend does not look likely to reverse soon.

The north-south gap in house prices is also likely to persist while borrowing remains expensive.

It will only narrow if wages in the south catch up or prices there fall further.

So, what should readers do? If you own a flat in the south and want to sell, price it realistically from day one.

Chasing last year’s value could cost you months. If you are a first-time buyer, falling prices may offer a genuine opportunity.

Check the lease, the history of service charges and the building’s safety record before committing. A cheap flat with a bad lease is no bargain.

Property expert Jonathan Rolande is one of the UK’s leading house market commentators. For more information, visit Rolande.Property.