North of England leading national house price growth

April 24, 2025

2025 is proving to be a good year for the UK property market, especially in the North of England, which is leading national house price growth. It’s the start of a new property cycle, and the latest figures from the Office for National Statistics make it clear where investors should be looking to maximise their income in 2025.

In England, the average property increased in value by almost 5% in the last 12-month period on record. In comparison, a typical home in the North West of England increased in value by 6.8%. Homes in the North East, West Midlands, East Midlands and Yorkshire and the Humber all exceed the national average, too.

London, however, fared less well, with annual growth of less than 3% recorded in the region.

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Is the North West the UK’s best property investment location?

The latest House Price Index from the Land Registry suggests that the North West is performing even more strongly than the ONS data suggests.

The agency records the average property value for the UK at £268,000, and says that prices have gone up 5.4% in the last year as of February 2025. House price inflation was highest in the North West (8%) and lowest in London (1.7%) in the same period.

That makes the North West the UK’s best location for property investors now and in the future. The North as a whole is leading the way, but buy-to-let property for sale in North West cities like Manchester and Liverpool is the best deal of all.

If you can buy UK investment property close to the waterfront or in a regeneration masterplan area, you can increase your returns even further.

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Five-year growth is the highest in the North of England

Importantly for investors, the growth we are seeing in the North of England is not a recent trend – it’s part of a years-long pattern that shows the region is the ideal long-term investment option.

The March 2025 Asking Price Index from home.co.uk shows that the average North West house price has gone up 29% in the five years since March 2020. That compares favourably to the national average of approximately 15% over the same period.

As with the ONS data, the North/South divide is clear. The North East, Yorkshire and the Humber, the West Midlands and East Midlands all join the North West in surpassing the national five-year average. London was below average over that time.

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The highest UK house price growth by 2029 will be in the North of England

Considering the past is one thing, but investors always need to look to the future to secure tomorrow’s returns. Reliable forecasting shows that the North of England will continue to lead house price growth in the UK for many years to come, making cities like Manchester the perfect place to invest in UK property.

Savills estimates that the national average house price will go up 23.4% by the end of 2029, but growth in the North will be much higher:

North West – 29.4%
North East – 28.2%
Yorkshire and the Humber – 28.2%
West Midlands – 26.4%

The UK market is performing strongly, but markets in the North of England are doing the best of all – a fact that is true now and in the future.

That makes this an ideal time to invest in property in the North of England and maximise your returns. The earlier you invest in 2025, the more benefit you will see. If you buy property off-plan, you can even benefit from lower mortgage costs in the future as rates continue to fall.

Looking for more UK property insights and information about investment opportunities in Northern cities? Contact our team today to discover our investments.

North of England leading national house price growth

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