2025 has been a good year overall for house price growth in the UK. An ongoing lack of supply has combined with high demand and lower borrowing costs to bring more buyers to the market and push prices up.
We’re not yet back to the double digit price growth seen in the recent past, but the upward trend is good and points to 2025 being the beginning of a new property cycle. The best time to buy is now, especially with global economic uncertainty raising the value of bricks and mortar as an investment – but where should you buy property in the UK?
Where is house price growth fastest in the UK?
House prices are growing across most of the UK. The latest data from the Office for National Statistics shows that house prices are growing at an average rate of 6.4% year-on-year. That’s an increase over the 5.4% annual rate recorded in the previous monthly figures.
However, not all markets are growing at the same speed. The figures show that average growth in the North West is 8.0%, whereas in London it’s just 1.7%.
That makes property for sale in Manchester city centre and other North West locations a great way to maximise capital appreciation now and in the future. Other regions growing faster than the average in England include Yorkshire and the Humber and the West Midlands – both of which are also great places to buy UK property in 2025.
Are house prices in the North going up faster than in the South?
More data from Zoopla in April 2025 supports this. Their House Price Index shows that house prices in the North West, West Midlands and Yorkshire and the Humber are all growing at least 50% faster than the national average.
Additionally, house prices in all those regions are growing at least three times faster than in London. In the case of the North West, the Zoopla Index shows prices are going up more than four times faster than in the capital.
Will house price growth continue over the rest of 2025?
Demand is slightly lower than in Q1 2025 and supply is slightly higher, but there are still more buyers than there are available properties. That will fuel house price growth. The Zoopla House Price Index also points to other economic factors that are likely to keep driving property price inflation.
The Index says: “While UK economic growth is expected to be weaker in 2025, growth in average earnings (5.6%) remains well ahead of general inflation. Current expectations are that the Bank of England may have scope to further lower the UK base rate this year. This would ensure the cost of average fixed-rate mortgage remains in the 4-5% range.
“This points to a general continuation of current housing market trends, with steady growth in sales as more sellers come to the market.”
Where are the best places to buy property in 2025?
With all that in mind, it’s simple to say that the best property investment locations in 2025 are the Northern regions and the Midlands. House price growth is fastest in those areas and populations are also going up rapidly. Combine that with a lack of supply and you have a recipe for house price growth in 2025 and beyond.
Other areas to consider include Bristol, which is a top property destination thanks to its rising population. Also, Bath is another South West city with a shortage of available homes, particularly in the city centre where there is only a small number of stylish 1-bed and 2-bed apartments for sale now.
Finally, Tunbridge Wells is an up and coming location in the South East which is bucking the regional trend and delivering strong growth for investors. Learn more about…
…then see our latest investment opportunity in the town – The Cocoa Residences.
How to buy UK property in 2025?
If you’re looking for UK property for sale in 2025 to make the most of the rising house prices, the Alliance Investments team provides UK property market insights and tailored advice to help you build a profitable portfolio. Get in touch today to learn more about our available investment options and how we can help you.
