House-price split North vs South – what it means for your equity and your inheritance

You may have seen the recent piece in the Daily Mail ON 25 October 2025 reporting that house-prices are soaring in the North of England but growth is slowing in the South. In short: if you live up North your property may have seen a sharper uplift; in the South things are more modest.

According to the article, many homeowners in Northern regions are enjoying significant increases in value. By contrast, in the South the heat has come off somewhat: slower growth, increased supply of homes, and greater affordability constraints. (Sadly I couldn’t access the full Daily Mail text to cite the precise numbers, but the trend is clear.)

So what does that mean for people thinking about releasing equity now, especially with one eye on what they’ll leave behind to their heirs?

Why the North-South split matters
Stronger growth up North – Because the starting values were lower, and demand is firm, many properties in the North are enjoying larger percentage uplifts.
Slower growth in the South – In the South, higher base values, tighter affordability and a greater supply of homes for sale are acting to dampen price rises.
Implications for your home value – If your property is up North, you might be sitting on more “unrealised gain”; if in the South, the gain may be smaller and more incremental.

Why releasing equity now might not reduce the inheritance you leave
Here’s the key point: If your home continues to appreciate in value, drawing out some of its equity now doesn’t necessarily mean a smaller estate for your beneficiaries. In fact, in many cases it won’t reduce the eventual inheritance, assuming the value keeps growing.

Here’s why:

Imagine your home is today worth £400,000. Suppose you release £50,000 of equity (via a lifetime mortgage or re-mortgage) and so your net value in the home post-release is £350,000 (ignoring fees and interest for simplicity).
Now assume house prices rise say 5 % a year for the next 10 years. The £350,000 grows to about £570,000. Meanwhile, had you not released the £50,000, your home would’ve started at £400,000 and grown to ~£640,000.
Net result: yes, you left less in the home (≈£570k vs ≈£640k) in pure value, but both are appreciably more than today’s value. And if you consider you had access to the £50,000 now (for life-enhancing spending, home adaptations, care, whatever), the picture changes: you’ve lived better AND still left a growing asset.
In an environment of strong house-price growth (as in many Northern regions), the released equity can be “soaked up” by the price rises, meaning the reduction in eventual inheritance may be modest or even negligible in real (inflation-adjusted) terms.
So if you live in a region where prices are climbing, the decision to draw down on your home doesn’t automatically mean you’re leaving less — it depends how much the asset appreciates.

What to watch out for
Growth isn’t guaranteed. Slower growth in the South is a reminder that regional variation matters. If the value stagnates, releasing equity does reduce the home equity pie.
Costs / interest matter. Lifetime mortgages or equity release products incur fees and interest, which eat into the net value over time — so the growth needs to outpace those.
Inheritance tax / benefit implications: releasing equity changes net worth, may affect means-tested benefits, and could alter inheritance tax calculations.
Timing and purpose matter: if you release equity now for something that improves your quality of life (adaptations, care, travel), you may feel the benefit now and potentially preserve the home’s growth for later.

The takeaway
The Daily Mail’s piece reminds us that where you live deeply affects how your property value behaves. If you’re in a region with strong growth, releasing equity isn’t necessarily an inheritance killer — indeed it might allow you to enjoy life now whilst still passing on a valuable asset. On the flip side, if you’re in a slow-growth region, you need to be more cautious: the upside is smaller, so the impact of drawing equity is bigger.

My-LaterLife.com: think of your home not just as a future ‘inheritance asset’ locked away. It can be a living resource — a tool to support you today — provided you understand the growth dynamics, regional trends and how it fits your overall later-life plan.