Exciting news for homebuyers! Some UK towns are set for significant house price growth by 2025, especially in Northern England and Scotland.
Motherwell: The property market is looking bright for 2025. Homes in Northern England and Scotland are expected to rise in value, unlike those in London.
According to Zoopla, areas in Scotland and Northern England are leading the charge for house price growth. Meanwhile, Southern England is still feeling the pinch from higher mortgage rates.
Zoopla analyzed various housing indicators, like home affordability and how quickly properties are selling. They ranked 120 postal areas to find the best prospects for 2025.
Good news! The UK housing market bounced back in 2024, thanks to rising incomes and falling mortgage rates. However, price growth is much faster outside Southern England.
Scotland is dominating the rankings, with nine out of the top ten areas for growth. Wolverhampton is the only spot outside Scotland and Northern England that made the cut.
Motherwell tops the list, with average house prices around £129,000 and a growth rate of 3.8%. Other top areas include Glasgow, Paisley, Falkirk, and Kirkcaldy.
Scotland’s homes are generally cheaper compared to incomes, and they sell faster due to a different selling system. Even when factoring in selling times, Scotland still holds eight of the top ten spots.
Falkirk follows Motherwell with a growth rate of 3.5%. However, Aberdeen is struggling due to low investment in the oil and gas sector.
In England, Newcastle leads the way, followed by Leeds, Stoke-on-Trent, Wigan, and Carlisle. Prices in these areas are rising between 2% and 5% annually.
On the flip side, inner London and Southern England are at the bottom of the rankings. High prices and longer sales times are holding them back.
Some coastal towns like Bournemouth and Torquay are also struggling due to new tax changes on second homes. Areas closer to London, like Tunbridge Wells, are adjusting to higher mortgage rates after rapid price growth during the pandemic.
Despite the challenges, London’s market is showing signs of improvement compared to previous years. In Wales, southern areas like Cardiff and Newport are thriving due to job concentration.
Interestingly, Northern Ireland is seeing the fastest price growth at nearly 7% year-on-year, thanks to post-Brexit trading arrangements.
Richard Donnell from Zoopla notes that the housing market is on the upswing. He expects average UK house prices to rise by 2.5% in 2025.
He emphasizes that while Scotland and Northern England have the best outlook, there’s a spread of demand across the UK. London is slowly regaining value after years of stagnation.
For anyone looking to sell in 2025, understanding local market conditions is key. Chatting with local agents can provide valuable insights on pricing your home.
