New analysis from Zoopla has revealed that the housing markets in Scotland and Northern England are expected to experience the best prospects for house price growth in 2025. These regions, according to the property portal, are set to benefit from a combination of factors that position them well for growth in the coming years. With affordability remaining more manageable compared to other parts of the UK, these areas are attracting more attention from buyers, which is expected to translate into stronger house price increases.
Meanwhile, the housing market in Southern England continues to face significant challenges. Zoopla notes that this region is still adjusting to the ongoing impact of higher mortgage rates, which have put pressure on both buyers and sellers. As a result, the market in the South is struggling to maintain the levels of growth seen in previous years, with rising interest rates limiting the buying power of many potential homeowners.
Zoopla’s comprehensive analysis considered a variety of key housing indicators to assess the market prospects. These included the affordability of homes in different regions, the speed at which properties are selling, and how much asking prices are being reduced in an attempt to attract more demand. The analysis also looked at the number of homes that have been on the market for more than six months, an indicator of how quickly properties are moving in different parts of the country.
The findings show that while some regions, particularly in the South, are still struggling to adapt to the changing economic landscape, areas in the North and Scotland are positioned to benefit from more stable conditions. As 2025 approaches, it’s clear that the dynamics of the UK housing market are shifting, with the northern regions set to lead the charge for house price growth.
The factors contributing to the prospects for house price growth in 2025 have been carefully collated and ranked across 120 postal areas in the UK. This analysis has led to the creation of an overall ranking, identifying the regions most likely to experience positive market movement.
After a period of challenges, the UK housing market made a return to growth in 2024. With incomes rising, mortgage rates dropping, and sales volumes recovering, house price inflation has shown variation across the country. Notably, the pace of price increases has been faster outside the southern parts of England.
When it comes to the areas with the best potential for growth, housing markets in Scotland are leading the rankings. In fact, nine out of the top ten spots are occupied by postal areas in Scotland.
At the top of the list is the Motherwell postal area, where house prices currently average £129,000. This area is already experiencing a healthy increase, with prices rising at an above-average rate of 3.8%. Other areas in the top five housing markets are situated in Eastern Scotland, primarily in and around Glasgow. These include the postal areas of Motherwell, Glasgow, Paisley, Falkirk, and Kirkcaldy, which are showing promising signs of growth heading into 2025.
Top ten housing markets in the UK
UK rank | Postal area | Country/ region | Average price | House price growth %yoy | Time to sell (days) | % stock >6m old | Asking price cut >5% |
1 | ML – Motherwell | Scotland | £129,055 | 3.8% | 13 | 13% | 8% |
2 | G – Glasgow | Scotland | £157,764 | 2.9% | 15 | 11% | 8% |
3 | PA – Paisley | Scotland | £134,472 | 1.3% | 16 | 23% | 12% |
4 | FK – Falkirk | Scotland | £164,106 | 3.5% | 14 | 14% | 8% |
5 | KC – Kirkcaldy | Scotland | £164,694 | 3.3% | 17 | 24% | 10% |
6 | KA – Kilmarnock | Scotland | £122,013 | 2.6% | 15 | 21% | 15% |
7 | EH – Edinburgh | Scotland | £247,072 | 1.6% | 21 | 18% | 8% |
8 | PH – Perth | Scotland | £197,761 | 1.4% | 25 | 31% | 13% |
9 | DD – Dundee | Scotland | £148,554 | 1.4% | 22 | 32% | 16% |
10 | NE – Newcastle | North East | £163,578 | 2.1% | 28 | 28% | 16% |
Source: Zoopla
House prices in Scotland are notably among the most affordable in the UK when compared to incomes. Additionally, homes tend to sell faster in Scotland due to a different system for selling properties. Interestingly, even when time to sell is excluded from the ranking criteria, areas in Scotland still occupy eight out of the top ten places in the rankings.
Motherwell currently leads Scotland in terms of house price growth, with an impressive rate of 3.8%. It is followed by Falkirk, which is seeing a growth of 3.5%. For context, the average house price growth across Scotland is 2.6%. On the other hand, Aberdeen has found itself at the bottom of the ranking for Scotland. The city’s market has been struggling, partly due to the low investment in the oil and gas industry, which has traditionally been a major economic driver in northeast Scotland.
Looking southwards, the markets in England that show the best prospects for 2025 are led by Newcastle, followed closely by Leeds, Stoke-on-Trent, Wigan, and Carlisle. These areas typically have housing affordability levels below the national average, creating room for price increases, provided that local economies continue to grow and jobs are created. In these regions, house prices are rising between two and five per cent, with Wigan experiencing the highest growth at five per cent per year.
Wolverhampton stands out as the one area outside Northern England that is ranked highly in terms of market prospects. In this region, reductions in asking prices are minimal (less than five per cent), and the average house price is just over £201,000. This is 13% below the West Midlands average, offering homebuyers better value for money compared to other areas in the region.
Top ten markets in England with best prospects for 2025
UK Rank | Postal area | Region | Average price | House price growth %yoy | Time to sell (days) | % stock >6m old | Asking price cut >5% |
10 | NE – Newcastle | North East | £163,578 | 2.1% | 28 | 28% | 16% |
11 | LS – Leeds | Yorkshire and the Humber | £221,636 | 1.7% | 29 | 29% | 14% |
12 | ST – Stoke-on-Trent | West Midlands | £185,579 | 3.0% | 31 | 31% | 14% |
13 | WN – Wigan | North West | £169,846 | 5.0% | 29 | 26% | 17% |
14 | CA – Carlisle | North West | £178,024 | 2.4% | 29 | 29% | 16% |
15 | WV – Wolverhampton | West Midlands | £201,004 | 3.1% | 32 | 28% | 14% |
16 | SR – Sunderland | North East | £119,201 | 2.4% | 30 | 30% | 18% |
17 | DH – Durham | North East | £141,841 | 3.9% | 31 | 28% | 18% |
18 | OL – Oldham | North West | £178,401 | 4.3% | 31 | 26% | 17% |
20 | M – Manchester | North West | £220,649 | 3.1% | 25 | 33% | 13% |
Source: Zoopla
The areas with the lowest rankings for house price growth in 2025 are primarily located in inner London and across Southern England. This trend is largely driven by higher property prices, as these markets continue to adjust to the ongoing impact of higher mortgage rates. This adjustment is evident through longer sales times and a higher volume of asking price reductions.
Central, South West, North West, and West London are situated at the bottom of the rankings, mainly due to the prolonged sales process and average house prices exceeding £635,000. This figure is more than double the UK average and significantly higher than the London average of £535,000. However, other areas of London feature higher in the rankings, as house prices in these locations are more affordable and accessible to a broader range of buyers.
Sutton, in outer South London, stands out as the highest-ranked area, with an average time to sell of 33 days and only 14% of homes seeing price reductions. This contrasts with the almost 20% of properties in central London experiencing similar price cuts. Coastal towns in Southern England, such as Bournemouth and Torquay, also rank among the bottom ten markets, owing to the reversal of pandemic-driven factors and the upcoming tax changes on second homes. Additionally, areas like Tunbridge Wells and Canterbury, located closer to London, are experiencing slower growth following the rapid price hikes during the pandemic and the ongoing adjustments due to higher mortgage rates.
While price falls in these lower-ranked areas are not expected in 2025, house prices are likely to rise at a slower pace than incomes, as affordability continues to adjust in the face of elevated mortgage rates. However, value for money is gradually returning to the London property market after a decade of below-average growth. Despite many areas of London sitting at the bottom of the rankings, the outlook for the city is far more promising compared to recent years.
Bottom ten housing markets in England
UK rank | Postal area | Region | Average price | Price increase yOy | Time to sell (days) | % stock >6m | Asking price cut >5% |
110 | Bournemouth | South West | £354,519 | 1.1% | 48 | 41% | 18% |
111 | Slough | South East | £494,106 | 1.7% | 42 | 39% | 18% |
113 | Canterbury | South East | £308,293 | 0.1% | 48 | 39% | 26% |
114 | Tunbridge Wells | South East | £410,833 | 0.7% | 46 | 40% | 21% |
115 | Torquay | South West | £298,289 | -0.6% | 49 | 47% | 22% |
116 | NW London | London | £635,416 | 0.1% | 41 | 48% | 22% |
117 | SW London | London | £721,931 | 1.1% | 42 | 46% | 25% |
118 | EC London | London | £705,705 | -2.7% | 47 | 57% | 20% |
119 | West London | London | £773,934 | 0.0% | 43 | 51% | 26% |
120 | WC London | London | £850,357 | 1.9% | 52 | 55% | 26% |
Source: Zoopla
In Wales, the areas with the best prospects for house price growth are concentrated in southern Wales, where there is a higher concentration of jobs and economic activity, particularly in cities like Cardiff and Newport. These locations are expected to see stronger market conditions due to their economic vitality and relative affordability compared to other parts of the country.
In contrast, the markets in mid and northern Wales are facing weaker demand. During the pandemic, house prices in these areas surged as buyers sought more space, but now these regions are seeing a reversal of that trend. Affordability pressures and a modest shift away from pandemic-driven preferences are contributing to slower growth.
Overall, house prices in Wales have increased by 30% since the start of the pandemic in 2020, a significant rise compared to an 8% increase in London and a 20% increase across the UK as a whole. However, the future growth potential varies significantly between the more robust markets in the south and the more challenging conditions in the northern and mid-regions.
Housing markets in Wales
UK rank | Postal area | Country/region | Average price | Price increase yOy | Time to sell (days) | % stock >6m old | Asking price cut >5% |
34 | CF – Cardiff | Wales | £212,467 | 2.5% | 34 | 32% | 15% |
42 | NP – Newport | Wales | £205,880 | 1.9% | 34 | 33% | 16% |
81 | SA – Swansea | Wales | £193,844 | 2.7% | 38 | 44% | 19% |
93 | SY – Shrewsbury | Wales | £260,704 | 1.7% | 45 | 44% | 16% |
109 | LD – Llandrindad Wells | Wales | £250,474 | 2.0% | 43 | 53% | 20% |
112 | LL – Llandudno | Wales | £206,617 | 1.7% | 47 | 48% | 23% |
Source: Zoopla
House prices in Northern Ireland are currently rising at the fastest pace in the UK, with an increase of almost seven per cent year-on-year. This surge is largely attributed to a rebound from a low base, as the region had lagged behind other parts of the UK over the last decade. One key factor driving the growth is the resolution of post-Brexit trading arrangements, which has boosted housing demand. The BT postal area, which covers Northern Ireland, is ranked 19th out of 120 areas, with homes selling in an average of just 20 days and only ten per cent of properties reducing their asking prices. As house prices in Northern Ireland catch up with the rest of the UK, this trend is expected to continue through 2025.
Richard Donnell, Executive Director at Zoopla, commented on the broader UK housing market outlook: “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.”
He further explained, “Our analysis of key local market indicators reveals the areas where there is potential for increased home moves and faster house price growth in 2025. While Scotland and Northern England are expected to perform the best, there is a spread of opportunities across the UK, driven by both demand and affordability.”
Donnell also noted that, in areas at the bottom of the rankings, house prices are likely to rise at a slower rate. “Value for money is slowly returning to the London property market after a decade of below-average growth, so while many London areas remain at the bottom of the rankings, the prospects for the capital are much improved compared to recent years.”
For home sellers looking to move in 2025, he advised, “It’s essential to consider the local market fundamentals, as these will influence how you price your home. Consulting local agents is the best way to gain insights into local conditions and determine the optimal price for a sale.”