UK House Prices Hold Steady in 2025: So What’s Next for Property Buyers and Investors?

UK House Prices Hold Steady in 2025: So What’s Next for Property Buyers and Investors?
 

If you’ve been following the headlines, you’ll know that the UK property market is showing signs of levelling out and UK property in 2025 is increasingly defined by regional growth and buyer confidence. For many, that might sound like a cooling off — but in reality, it’s a signal of growing maturity and long-term confidence, especially in the North West.

While headlines focus on uncertainty, the UK housing market in 2025 is quietly stabilising, especially in key northern regions. According to the latest UK House Price Index, the average UK property is now valued at £271,000, with prices up 1.8% on this time last year. Not fireworks, no,  but solid. And in a market that’s had its fair share of ups and downs lately, stability is something to value.

In the North West, house prices have outperformed the national average for several years now, and the outlook remains just as promising for 2025 and beyond.

Key Takeaways

Northern markets like Manchester and Liverpool remain strong performers

• Price growth in the North West continues to outpace London and the South
• Underlying factors: population growth, regeneration, jobs, and buyer demand
• Rothmore Property gives access to 60+ developments in key UK growth areas.

What’s Driving Resilience in the North West?

Manchester house prices have consistently outpaced the national average, supported by population growth and a wave of regeneration.

So, why are prices in places like Greater Manchester holding firm and in many cases, continuing to rise?

Several key fundamentals are at play:

• Population Growth

The North West is growing. Manchester’s population alone is expected to surpass 635,000 by 2030 (ONS), fuelled by young professionals, students, and families seeking more affordable urban living outside the South East.

• Regeneration at Scale

Areas like Salford, Ancoats, and Castlefield are being transformed with billions in development. In central Manchester, more than 500 homes are being added as part of a £200 million scheme, and just off Great Ancoats Street, a proposed £241 million twin-tower project could bring over 1,000 new homes to the area.

Meanwhile, Salboy’s recent acquisition of the former Renault site on Trinity Way shows long-term developer confidence in Salford's continued growth.

• Employment Opportunities

Manchester is now the fastest-growing tech hub in Europe (Savills, 2024), and the city is attracting major employers in sectors like media, life sciences, and fintech. More jobs = more renters and buyers.

• Easing Mortgage Pressure

While rates remain higher than pre-2022 levels, lenders are gradually improving deals. This has helped bring motivated buyers back to the market in Q2 2025 — especially in regional cities offering better value than London.
 

How Does the North West Compare to the South?

Data from Zoopla (April 2025) shows the North West recorded 2.3% annual price growth, while London lagged at just 0.6%. This reflects not just affordability differences, but the underlying strength of demand in cities undergoing transformation.
While many parts of the South East face affordability ceilings, northern cities still offer growth potential, rental yields of 6–7%, and entry points below the national average.
 

What’s the Outlook for 2025–2026?

According to the latest JLL UK Residential Forecast, the North West is expected to see house price growth of 17.6% between 2025 and 2029, compared to 10% in London.

In the short term (2025–2026), JLL projects a 3.5–4% annual price rise in Greater Manchester, driven by regeneration, transport investment, and strong employment pipelines.

It’s a compelling case for anyone considering a move or a new investment strategy in a regional growth area.

Why Buyers Are Still Active

Even in a more stable market, demand remains strong. The factors behind this:

• Urban regeneration is improving liveability in key cities
• Rental yields remain competitive, particularly in purpose-built developments
• Young professionals and international students are driving rental demand
• Investors are looking beyond London for better returns and lower entry prices

Rothmore Property offers tailored support for first-time buyers and seasoned investors alike, helping you navigate your next real estate investment.
 

Why Investors Shouldn’t Wait

A steady market benefits investors:

• Less competition from panic-buyers
• More predictable returns in a high-inflation environment
• Stronger rental markets in major UK cities

If you're considering your first investment or looking to expand, these conditions are worth taking advantage of.
 

How Rothmore Property Can Help You Make the Right Move

At Rothmore Property, we’re not just about selling units. We’re here to guide you to the right one. With over 60 developments across the UK and a strong focus on northern growth cities, we’ve got our finger on the pulse of where to invest next.

If you're looking to enter or expand in the Manchester market, we would recommend developments such as:

• Vista River Gardens – Salford riverside living with high spec and strong projected yields
• Obsidian – Sleek city-centre apartments ideal for young professionals
• Waterhouse Gardens – A well-connected development offering value and lifestyle in equal measure

Whether you're new to property or building a portfolio, our team is here to guide you from enquiry to completion.
 

Final Thoughts

The 2025 market might not be making front-page headlines but for investors, that’s actually a good thing. No drama, no panic. Just steady prices, high demand, and loads of potential in the UK’s most exciting regional cities.

For investors and buyers alike, the North West continues to stand out, offering value, resilience, and strong long-term prospects.

In a steady market, smart investments shine. If you’re ready to explore what’s out there, now is the time to start the conversation.

Sources: JLL UK Residential Forecast 2024, ONS Population Projections, Zoopla HPI April 2025