As we approach 2025, the UK property market is set to experience moderate growth, but the trajectory will differ significantly between the North and South. According to recent forecasts from Zoopla, UK house prices are expected to rise by an average of 2.5% over the year, with regional affordability playing a critical role in shaping this growth. For savvy investors, understanding these regional disparities will be key to maximising returns.
Over the past decade, property prices in London and the South of England have grown substantially, rising by 83% and 70% respectively since 2010. In contrast, prices in the North of England, Scotland, and Northern Ireland have lagged, increasing by 41%, 30%, and 19% respectively over the same period.
This significant gap in growth means one thing for investors: greater affordability and stronger growth potential in the North. Regions like Manchester, Leeds, Liverpool, and Newcastle still offer attractive entry points for property investment, with more room for price appreciation compared to the already saturated Southern markets.
Zoopla predicts that mortgage rates will likely remain stable in 2025, but affordability constraints and cautious buyer sentiment will keep growth in check, especially in more expensive southern markets. Buyers are becoming increasingly price-sensitive, and regions offering value for money will naturally attract more interest.
In the North, however, more affordable property prices, combined with rising rental yields and ongoing regeneration, create a far more investor-friendly environment. These factors suggest that northern cities are primed for above-average house price growth in the coming years.
"2025 presents a clear opportunity for property investors to look beyond London and Southern England. The North offers a compelling investment case with affordable entry points, higher rental yields, and significant potential for capital growth. For investors looking to diversify and maximise returns, northern cities are the smart choice." — Keith Egan, Managing Director of Magnate Assets
For UK property investors—whether seasoned or new—the message is clear: diversify geographically and focus on regions offering the best balance of affordability, yield, and growth potential. Northern cities represent a golden opportunity to achieve long-term returns while capitalising on the UK's evolving property landscape.
At Magnate Assets, we specialise in guiding investors through these opportunities with market insights, exclusive project access, and tailored investment strategies.
Stay informed, stay ahead—partner with Magnate Assets and make 2025 your most successful investment year yet.