* By property investment specialist UOWN *
Northern cities are set to outpace the South in UK house price growth over the next five years, new data reveals.
London and the South have traditionally set the pace for the property market, but new data from property investment specialist UOWN points to a change. Analysts predict house prices in Northern England will increase by 5% in 2025 and by nearly 30% in some areas over the next five years.
The North West topped the table for the biggest growth in house prices, with a 29.4% jump to an average of£226,627 (Nov 2024) predicted in the 5 years to January 2030, according to research from UOWN using ONS, Zoopla and Rightmove data. UOWN said this is down to buyers moving away to more affordable locations following huge increases in mortgage costs.
“High rates have had an oversized impact on the South in 2024 and this trend will continue in the coming years, driving homeowners and investors from more traditional hotspots to new areas”, says UOWN’s Founder and Managing Director, Haaris Ahmed.
“Some areas of the UK – including Leeds and Sheffield – have seen remarkable house price growth this year, as buyers perhaps seek out more affordable areas where house prices, despite increases, are still coming in under the national average.”
The report from UOWN’s 2025 UK Property Investment Guide highlights key factors contributing to the UK’s housing price surge: falling interest rates, stamp duty reforms, and sustained increases in real wages, which have collectively improved housing affordability.
One significant change involves stamp duty reforms, which will impact a much larger number of transactions. According to the 2025 UK Property Investment Guide, 83% of transactions are expected to incur stamp duty from April 2025, compared to just 49% under the current thresholds. This shift could significantly affect buying decisions.
With the UK housing market showing signs of recovery and stamp duty thresholds set to revert to their original levels on 1 April 2025, buyers and investors will be eager to know where the best opportunities lie for the year ahead.
The UK’s property hotspots
When it comes to housing price growth in the UK property market, data points to Northern cities, indicating that investment opportunities are shifting away from traditional Southern strongholds near the capital. Buyers are increasingly competing for homes in historically more affordable areas further from London and its surrounding boroughs.
According to the investment guide cities in the North are set to see the strongest house price growth over the next five years, outperforming national averages and presenting significant opportunities for both buyers and investors. UOWN says it expects the strongest house price growth to be in the “more affordable markets in the North” in the coming years, with areas such as the North West, North East, Humber, Yorkshire and Scotland to see a forecast 5% increase in prices in 2025.
So, which areas should buyers and investors keep an eye on in 2025?
Skelmersdale (Lancashire)
With house prices in the North West expected to grow by 29.4% over the next five years, it’s no surprise that Skelmersdale in Lancashire ranks at the top of the list. A vibrant town set in the Lancashire Valley on the River Tawd, it boasts strong transport links to major cities like Liverpool and Manchester while offering a balance of urban convenience and green spaces, with easy access to the picturesque Pennines.
Skelmersdale has seen rapid house price growth in the past year, with average newly-listed asking prices rising by 8.4% in 2024 – a trend expected to continue according to UOWN data.
A thriving hub of industry and retail, the town is surrounded by scenic wooded valleys and cloughs, with green open spaces and central woodlands weaving through the landscape.
Leeds (West Yorkshire)
Property in Leeds remains relatively affordable, with an average price of £270,000 and plenty of affordable options for investors. With house prices projected to rise by 28% over the next five years – outpacing London’s expected 17% growth – the West Yorkshire city presents a compelling opportunity for both rental income and capital appreciation.
The city has emerged as somewhat of an economic powerhouse and a top choice for investors. Contributing £69.4 billion to the UK economy, it is home to major employers like Sky Bet, Channel 4, Asda, and NHS Digital. With a population exceeding 800,000 and growing faster than the national average, demand for quality rental housing continues to rise.
High-yield areas like the city centre and Headingley offer rental returns of 6-7%, making it a strong performer in the buy-to-let market.
Sheffield (South Yorkshire)
A location we are excited about right now, and that should appeal to buy-to-let investors, is Sheffield. Property in the Steel City is very affordable and central areas, in particular, will appeal to young professionals and students (S1, S2 and S3). A well-located one-bed flat in good condition can be purchased for around £110k, and a two-bed flat for £140k.
A vibrant and rapidly growing city, Sheffield offers impressive rental yields of approximately 7%. Ongoing public and private investments have only enhanced its desirability, making it an increasingly attractive prospect. With excellent transport links to major cities like Leeds and Manchester, and London just under two hours away by train, Sheffield combines strong returns with outstanding connectivity.
North Shields (Tyne and Wear)
North Shields is another area experiencing price growth, driven by a combination of factors. Firstly, house prices remain relatively low compared to major cities, making mortgage repayments manageable even amidst higher interest rates. With an average house price of £215,000, North Shields offers significant affordability, especially when compared to nearby Newcastle city centre.
Secondly, strong demand from investors and renters is fueling growth, with better rental yields and lower entry costs attracting buy-to-let investors. Many of these investors are moving away from pricier areas due to increasing regulations and costs.
As larger cities become increasingly out of reach for first-time buyers, many are turning to commutable yet affordable towns with improving amenities. North Shields is becoming a hub for a growing professional community, benefiting from nearby economic growth while still offering excellent value for money.
Sunbury-on-Thames (Surrey)
The only location outside the North to make the top 10 is Sunbury-on-Thames in Surrey. This commuter town remains in high demand due to its direct transport links to London—London Waterloo is less than an hour away—offering buyers an ideal balance of connectivity and quality of life.
Situated on the north bank of the River Thames in the Borough of Spelthorne, the picturesque town saw a 12.5% rise in the average asking price of a home, increasing from £527,005 to £592,976. This marked the UK’s highest price increase last year. With further growth of 17.6% predicted over the next five years, Sunbury-on-Thames remains a prime investment spot for buyers and investors alike.
“Home hunters and buy-to-let investors are certainly facing new challenges, such as higher stamp duty, fluctuating interest rates and stricter regulations, but that doesn’t mean the opportunities are gone” says Ahmed. “In fact, our research shows that looking beyond the traditional hotspots in the South East could be a smart move. With rising demand in the North and more affordable markets, there are significant growth opportunities for those willing to explore up-and-coming areas. The potential for long-term gains is very much still there, and house buyers and investors just need to know where to look.”
You can download the full 2025 UOWN Property Investment Guide here: https://www.uown.co/guides/uk-property-investment-guide