Property growth in the UK appears to be shifting focus away from London and the South, according to new data published by investment platform UOWN. Forecasts suggest that house prices in Northern England will climb by around 5% in 2025, with some locations set for gains close to 30% over the next five years.
Leading these projections is the North West, where prices are expected to rise by nearly 29.4%, reaching an average of £226,627 by early 2030. The surge is attributed to buyers moving towards areas offering better affordability, particularly after mortgage rates pushed up housing costs.
The analysis draws from a combination of data from the Office for National Statistics, Zoopla, and Rightmove, presented in UOWN’s 2025 UK Property Investment Guide. Contributing factors include the expected reduction in interest rates, changes to stamp duty rules, and consistent wage growth, all improving the prospects for buyers.
One key adjustment coming into effect on April 1, 2025, is the rollback of current stamp duty thresholds. UOWN’s report anticipates that 83% of property transactions will be subject to stamp duty from that date, up from the current 49%. This could prompt many buyers to act before the shift or rethink their budgets.
With signs of recovery in the property sector, those looking to invest are paying close attention to where the strongest growth might take place. Northern regions, once considered secondary to the South, are attracting more interest. Buyers and investors alike are showing growing confidence in cities that still offer affordability and room for growth.
Data indicates that regions like the North West, North East, Yorkshire, Humber, and Scotland will see steady price increases in 2025, with growth estimates around 5%. Here are some of the locations experts recommend watching:
Skelmersdale, Lancashire
Skelmersdale stands out as a top contender. With the North West region forecast for nearly 30% growth over five years, this Lancashire town is well-positioned. Strong transport links connect it to Manchester and Liverpool, and the area offers a blend of city convenience and access to natural spaces like the Pennines. According to UOWN, average asking prices in Skelmersdale jumped by 8.4% in 2024, and that momentum is expected to carry on. The town’s mix of retail, industry, and green corridors makes it attractive to both buyers and renters.
Leeds, West Yorkshire
Leeds continues to offer value for those looking at long-term potential. The average property price sits at £270,000, with forecasts suggesting a 28% increase by 2030 – well ahead of the 17% expected for London. Leeds has become a major contributor to the UK economy, with employers like Channel 4, Sky Bet, and Asda headquartered in the city. The population exceeds 800,000 and is growing faster than average, pushing demand for rental properties. Yields of 6-7% can be found in areas like Headingley and the city centre, adding appeal for investors.
Sheffield, South Yorkshire
Sheffield’s affordability and growth prospects make it an attractive option for buy-to-let investors. In central areas (S1, S2, and S3), one-bedroom flats in good condition can be bought for around £110,000, with two-bedroom units averaging £140,000. Rental yields near 7% are common. Ongoing regeneration efforts and strong transport links to major cities further boost Sheffield’s appeal. With London just under two hours away by train, it remains well connected for commuters and professionals.
North Shields, Tyne and Wear
Finally, North Shields is seeing steady demand from both buyers and investors. The average property price here stands at £215,000, lower than what one would pay in Newcastle’s city centre. The area is becoming increasingly popular with professionals, drawn by its affordability and proximity to economic hubs. Lower entry prices, combined with appealing rental yields, have encouraged more buy-to-let investments, especially from those priced out of larger cities.
For 2025, attention is clearly shifting northwards, with affordability and growth potential at the core of investment decisions.
Reference: Yorkshire Times
