Property Market Focus: The North West

While the UK property market navigates a period of economic uncertainty, the North West has decisively emerged as the country's most resilient and dynamic regional powerhouse.

Average house prices are outperforming national averages with strong annual price growth and the highest recent monthly increase. The region provides a counter-narrative to the affordability constraints facing London and the South East.

The market is delivering a combination of capital appreciation and robust rental yields, driven by large-scale regeneration in areas such as Liverpool and Manchester.

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Market Performance and Affordability

The North West saw an average house price increase of 4.5% in the 12 months to August 2025. This was a rise of approximately £8,400, bringing the average to around £246,000.

While growth was strong, it was driven by specific areas, with some neighbourhoods seeing much faster price increases and new builds carrying a significant premium over existing homes.

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Affordability

The property market shows significant potential for future growth, especially when compared to high-value regions such as London, where the average house price is £663,000, and the South-East, which now averages £440,000.

This disparity, coupled with sustained demand from first-time buyers, is attracting a migration of capital and human resources into the North West.

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Economic and infrastructure drivers

The North West has seen huge economic growth due to the powerhouses that are Manchester and Liverpool. These core cities have attracted global capital, and as infrastructure continues to develop, the property market has benefited.

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Manchester

Manchester, often called the UK's "second city”, has experienced significant growth in its financial, media, and technology sectors. This expansion has led to areas like MediaCityUK becoming crucial business hubs both nationally and internationally.

The city has undergone substantial regeneration and attracted considerable investment, causing a surge in its property market. Over the past five years, average house prices have increased by 25-30%, with average rents reaching new peaks of £1205 per calendar month.

Local projects such as Manchester's Metrolink have improved their urban systems, creating a premium for homes near stations, and widening the commuter belt.

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‍Liverpool

Liverpool's port expansion and continuing city-centre development have significantly boosted professional employment, drawing new residents to the city. The property market in Liverpool has experienced exceptional growth, with an estimated annual price increase of 7.0% to 11.7%, driven by the city's affordability and liveability.

Proposals for a new cross-city railway linking Manchester and Liverpool, including Manchester Airport, would connect half a million people within 30 minutes of the city centres.

Rail Professional estimates this initiative will generate a £90 billion economic uplift and facilitate the creation of 500,000 new homes across the North West.

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Continuous demand

The region's property market is showing no signs of slowing. Its affordability compared to London and the South, where residents are being priced out, means these buyers are looking here with healthy budgets.

A continuous supply shortage of new houses being built across the North West is also adding pressure and competition to the housing market, with a growing demand and lack of supply, house prices continue to grow.

Major economic growth in cities such as Manchester has seen increased job creation. With this, a growing population of young professionals and families are looking to settle in the city centres or surrounding suburban areas.

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Outlook

Savills’ latest data suggests the North West is set to be the UK’s strongest-performing region over the next five years, with house prices predicted to rise by 31.2%—well above the national average of 23.4%.

With lower living costs, solid infrastructure and increasing levels of investment, the North West property market is positioned for continued growth.

If you’d like to take advantage of these opportunities or learn more about investing in the region, get in touch with us today or visit our website.