Zoopla's analysis reveals that housing markets in northern England and Scotland are set to lead the way in house price growth this year. Key indicators like affordability, sales speed, and price reductions point to promising prospects in towns like Wigan, Newcastle, Leeds, and Stoke-on-Trent. While southern England and London face more subdued growth, value for money is gradually returning to the capital market.
An unassuming town in Greater Manchester has been named one of the UK's top property hotspots in 2025. New analysis from Zoopla has revealed that housing markets in northern England and Scotland have the best prospects for house price growth this year.
The property website assessed a range of key housing indicators including the affordability of homes, how quickly property is selling, how much asking prices are being cut to attract demand and how many homes have been on the market for more than six months. These factors have been collated and ranked across 120 postal areas of the UK to create an overall ranking of the areas with the top property markets in 2025. The best markets are led by Newcastle, closely followed by Leeds, Stoke-on-Trent and Wigan. House prices are rising between two percent and five percent across these areas, with prices in Wigan already rising at five per cent a year. The average house price across the town remains affordable and sits below the national average at £169,846, whilst it takes an average of 29 days to tell a house. Zoopla says: 'This creates headroom for price rises provided local economies grow and create jobs.' Also ranked amongst the top property markets in 2025 are Oldham, where prices have risen by 4.3 percent in the last year, and Manchester, with a rise of 3.1 percent. Oldham currently has an average house price of £178,401 whilst homes are more expensive in Manchester, selling at around £220,649. The areas with the lowest rankings for 2025 are found in inner London and across Southern England. This is primarily a function of higher property prices, as these markets continue to adjust to the impact of higher mortgage rates through longer sales times and greater asking price reductions. Central, South West, North West and West London sit at the bottom of the rankings, due to longer sales times and average house prices over £635,000. This is more than double the UK average and higher than the London average price (£535,000). Some coastal towns in Southern England like Bournemouth and Torquay also sit in the bottom ten markets due to a reversal of pandemic factors and incoming tax changes on second homes. Others are in closer proximity to London, including Tunbridge Wells and Canterbury, where prices grew quickly over the pandemic and local markets are adjusting to higher mortgage rates. Price falls in these lower-ranked areas aren’t expected in 2025, but house prices are likely to rise more slowly than incomes as affordability continues to reset in the face of higher mortgage rates. Value for money is slowly returning to the London property market after a decade of below-average growth. Although many London areas sit at the bottom of the rankings, prospects in London are much improved on those over recent years. Richard Donnell, Executive Director at Zoopla comments: “The housing market returned to growth in 2024 with more sales and higher prices as mortgage rates fell. We expect average UK house prices to increase by 2.5 per cent in 2025. 'Our analysis of key local market indicators reveals the areas where there is scope for increased numbers of home moves and house prices to increase at an above-average rate over 2025. While the outlook is best in Scotland and Northern England, there is a spread right across the UK reflecting the demand for and affordability of homes. “Home values are likely to rise at a lower rate in areas towards the bottom of the rankings. Value for money is slowly returning to the London property market after a decade of below-average growth so while many London areas are towards the bottom of the rankings the prospects in London are much improved on those over recent years. 'Serious sellers looking to move home in 2025 need to consider the local market fundamentals which will have an impact on how you price your home. Speaking to local agents is the best way to get insight into local conditions and how to price your home for a sale.
PROPERTY MARKET HOUSE PRICES UK NORTHERN ENGLAND SCOTLAND Zoopla AFFORDABILITY MORTGAGE RATES
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