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Property hotspots in 2025

ended 06. December 2024

A national newspaper journalist is writing a piece on the areas of the UK that could see stronger than average house price growth in 2025. Following the Budget, and despite the fact we will likely get more rate cuts from the Bank of England next year, prices may not rise as much as hoped in 2025 — but where do you think there could be pockets of resistance and why? Which towns/cities/areas of the UK could outperform despite the economic headwinds - and why? Any thoughts, send them across. Deadline is 08:00 tomorrow.

7 responses from the Newspage community

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Emma Burke
Head of Origination at Maslow Capital
Regions such as the North West, North East and Yorkshire are expected to outperform the national average in house price growth in 2025. Contributing factors include relative affordability, strong local economies and substantial infrastructure investments like the TransPennine Rail Upgrade. Additionally, northern cities are diversifying their economies by attracting new industries and fostering employment growth. Cities like Manchester and Leeds have some of the highest graduate retention rates in the UK, retaining a significant number of students who transition into the local workforce. This trend increases demand for housing and paves the way for build to rent and co-living spaces. The scheduled reversion of Stamp Duty thresholds is expected to trigger a surge in transactions ahead of the deadline, potentially followed by a market adjustment. While rate cuts may ease borrowing costs, their positive impact could be offset by persistent inflationary pressures and cautious lending.
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Imran Hussain
Director at Harmony Financial Services
Nottingham and Derby have emerged as highly attractive options for both property buyers and investors. The Midlands cities offer a unique blend of affordability and strong demand dynamics. Compared to larger urban centres like Birmingham and Manchester, Nottingham and Derby provide more accessible entry points into the property market. With average house prices significantly below the national average, these cities offer distinct advantages for both first-time buyers and investors. Competitive pricing makes homeownership more attainable, while lower property prices boost potential rental yields. As these markets experience sustained and growing rental demand, investor confidence remains high.
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Kate Allen
Owner at Finest Stays
If the UK market is navigating choppy waters, Salcombe is the champagne sailing yacht, gliding effortlessly with its sails full. The town’s enduring appeal is buoyed by its affluent buyers, many of whom are less sensitive to interest rate fluctuations, and by its ability to combine exclusivity with a quintessential seaside lifestyle.
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Rohit Kohli
Director at The Mortgage Stop
Romsey and the surrounding Hampshire hotspots are primed to defy predictions and deliver stronger-than-average house price growth in 2025. Known for their rich history, stunning landscapes and strong community spirit, these areas remain highly desirable. Romsey itself is steeped in charm, with quirky historic properties, vibrant communities, and a loyal population, including retirees returning from abroad or London commuters choosing to settle. Surrounding villages like Stockbridge and North Baddesley also benefit, offering a mix of character homes and modern developments. Even with new builds emerging, demand outstrips supply, keeping prices buoyant. Buyers here are undeterred by economic headwinds, with many saving longer or using pension pots to secure a home. Flexible lending options from some banks are helping first-time buyers and retirees take their next steps. Romsey and the surrounding areas are an example of how pockets of resilience can thrive, even in challenging markets.
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Simon Bridgland
Broker at Charwin Private Clients
The far South East, in particular East Kent is still very affordable, with the potential to flourish going forward. It’s close proximity to the capital by high steed links help those still making the commute to the big smoke. The eternal promise that Manston Airport holds is a potential gold mine as for the last decade various options have been mulled over. Currently home to a market and the odd pigeon and cabbage field it is believed it could reopen again for some international and cargo flights. Easing the strain on Gatwick, Heathrow and Stansted. Such an opportunity for the South Easy to ease the pressure around the capital.
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Zaid Patel
Director at Highcastle Estates
Barking and Dagenham is one of Londons more affordable boroughs and has extensive regeneration projects ongoing in housing, transport and more surprisingly, the film industry, which will create approximately 1200 jobs. This will undoubtedly positively impact the rental market, and the prices in London seem to keep going higher. With an average house price of just under £350,000, rental yields around 6% and prices expected to increase in the coming decade, a purchase in this area is a wise investment choice considering the change planned here in the next 10 years.
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Kelsey Phillips
Head of Specialist Lending at Arose Finance
As the landscape for UK landlords evolves, so too must our investment strategies. The quest for real, inflation-adjusted yields has been emboldened by recent changes to the UK’s regulatory, fiscal, and monetary policies - a trend we anticipate will persist through 2025. Notably, we’re observing a pronounced shift in investment region towards the North East and North West of England. The rationale is clear, greater relative income that attracts a smaller tax burden: on average, the northern regions offer rental yields that are 2.4% higher than those in Greater London and average stamp duty liabilities that are just a tenth of those in the Capital. This combination significantly enriches the return on cash invested, making the North East and West an increasingly attractive opportunity-set for the UK investor.