Northern England Leads UK House Price Growth Prospects In 2025

Housing markets in Scotland and Northern England are set to outperform the rest of the UK in 2025, according to new analysis from Zoopla.

The property website’s report identifies Northern England markets like Newcastle, Leeds, Stoke-on-Trent, Wigan, and Carlisle as having the best prospects for house price growth in England, with prices rising between 2% and 5% annually. These areas offer more affordable homes compared to the UK average, providing scope for growth as local economies expand and job opportunities increase.

Zoopla’s analysis considers a range of factors, including housing affordability, sales speeds, price reductions, and the proportion of homes on the market for over six months. This comprehensive approach highlights Newcastle as the strongest market in England, with Leeds and other northern cities close behind.

In these markets, affordable housing prices combined with strengthening local economies create ideal conditions for continued growth. Wigan, for instance, is already seeing annual house price growth of 5%, well above the national average.

Scotland dominates Zoopla’s overall rankings, accounting for nine of the top ten postal areas with the best prospects for price growth. Motherwell leads the list, reflecting strong affordability and demand in the region.

In contrast, housing markets in Central, South West, North West, and West London rank at the bottom of Zoopla’s analysis. With average house prices exceeding £635,000, more than double the UK average, affordability constraints and the lingering impact of higher mortgage rates are limiting growth.

(1)The UK housing market returned to growth in 2024, supported by rising incomes, falling mortgage rates, and recovering sales volumes. However, price inflation varies significantly across the country, with Northern Ireland leading the way at nearly 7% annual growth, and markets in Northern England and Scotland set to follow closely in 2025.

This report highlights promising opportunities for homebuyers and investors in Northern England, where affordability and economic momentum are driving growth. For those looking to purchase or invest, cities like Newcastle and Leeds offer strong potential in the year ahead.