Around one million UK homes have risen by at least 50 per cent in value since the coronavirus pandemic, according to estimates by Zoopla.
The property website said house values have increased by a fifth (20 per cent) on average since 2020.
Many of the homes that have seen their value increase by 50 per cent or more in the past five years are located in northern England and Wales, with only one per cent of London homes seeing such a value increase.
The average asking price in the capital was £825,100 with the average cash increase among the London homes whose value increased by 50 per cent or more £371,000.
Pandemic and lifestyle-led changes in buyer requirements have prompted interest in previously overlooked areas that offer good value for money, it added.
In addition, rental price hikes in cities have encouraged first-time buyers to purchase in more affordable areas where buying can be a cheaper alternative, Zoopla said.
The website highlighted some hotspots that have emerged in Wales and northern England.
It said South Wales presents a “compelling picture,” with buyers able to find good value and be within commuting distance to Cardiff.
Areas such as Blaenau Gwent and Merthyr Tydfil have seen three-in-10 homes increase in value by 50 per cent or more over the past five years, Zoopla said.
In a similar pattern, parts of North West England located near Manchester and Liverpool have seen house price jumps.
Homeowners in Rochdale, Oldham and Bolton are among those who may have seen their property’s value surge by 50 per cent or more over the past five years, Zoopla said.
The sizeable value increases observed in the North are less common in southern regions, the website added.
A significant proportion of homes in the South that have experienced substantial value growth in recent years tend to be concentrated in desirable coastal destinations and areas of natural beauty, such as the Isle of Wight, it added.
Richard Donnell, executive director at Zoopla, said: “Our latest analysis clearly shows there is no single housing market and that house price trends vary widely across the UK.
“One million UK homes have seen their value increase by 50% or more over the last five years as higher mortgage rates and rising rents encourage home buyers to seek out value for money in localised markets across northern England and Wales.
“Home value growth has been weaker across southern England and particularly in London. A combination of high prices and higher mortgage rates has reduced buying power, and this has been reflected in flat prices and modest price falls in inner London.
“The UK currently has the most homes for sale in seven years. It’s critically important serious sellers fully understand the local market dynamics impacting the value of their home and seek the advice of agents on where to set the asking price for their home in order to achieve a sale.”
Matt Thompson, head of sales at London-based estate agent Chestertons, said: “In London, buyer demand has remained relatively strong over the past weeks, which is resulting in stable or increasing property values in certain areas. Other parts of the capital, such as prime central London, however, have seen a slight price adjustment, which is giving more domestic buyers the opportunity to purchase a property in sought-after locations within their initial budget.”
Nathan Emerson, chief executive of property professionals’ body Propertymark, said: “For people already on the property ladder, this will increase equity, provide greater refinancing opportunities, and may make it easier for those who wish to move into a bigger, more expensive home to do so.
“However, for first-time buyers, this presents the potential for further restrictions such as increased costs, affordability challenges and greater competition from other buyers, which could drive up prices even further.”
Zoopla’s analysis compared current home value estimates published on the website with values in June 2020.
The main figures included the whole of the UK, while sub-national analysis excluded Northern Ireland.
