A report from UOWN found that house price growth in cities in the North of England is set to outstrip traditional Southern hotspots over the next five years.
Analysts predicted that average house prices in Northern England will rise by 5% in 2025, with certain areas seeing nearly 30% growth by January 2030.
The North West led this trend, expected to increase by 29.4% to an average of £226,627 by November 2024.
The UOWN 2025 UK Property Investment Guide highlighted factors contributing to this housing surge, including falling interest rates, stamp duty reforms, and rising real wages.
The report noted that from April 2025, 83% of transactions are expected to incur Stamp Duty, compared to 49% under current thresholds, affecting buying decisions.
Skelmersdale, Lancashire, is expected to see significant growth with a projected rise in house prices driven by its strong transport links to major cities and growing local amenities.
The town recorded an 8.4% increase in asking prices in 2024.
Leeds, West Yorkshire, remains relatively affordable with an average price of £270,000.
House prices are expected to rise by 28% over the next five years, significantly outpacing London’s predicted 17% growth.
Leeds contributes £69.4bn to the UK economy and is home to major employers, ensuring demand for quality rental housing.
Sheffield, South Yorkshire, offers excellent investment opportunities with affordable properties and rental yields of approximately 7%.
The ongoing public and private investments enhance its appeal, complemented by strong transport links to other major cities.
North Shields, Tyne and Wear, has an average house price of £215,000, making it attractive for first-time buyers and buy-to-let investors.
The town offers lower entry costs compared to nearby Newcastle, with strong demand from renters fuelling its growth.
Sunbury-on-Thames in Surrey is the only Southern location in the top list.
Its direct transport links to London contribute to high demand, with a remarkable 12.5% rise in average asking prices last year.
A further increase of 17.6% is predicted over the next five years.
Haaris Ahmed, founder and managing director of UOWN, said: “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.”
“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.”
Ahmed added: “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.
“In fact, our research shows that looking beyond the traditional hotspots in the South East could be a smart move.
He said: “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.”
