House prices are predicted to soar in this unexpected part of the region this year, experts say
A ‘surprising’ town in the North West has been named 2025’s property hotspot, with house prices expected to surge this year according to experts.
New data has revealed that northern cities are set to outpace the south in UK house price growth over the next five years. Whilst the south, especially London, has traditionally set the pace for the property market, property investment specialist UOWN has now pointed towards a change.
UOWN predict house prices in Northern England will increase by 5% in 2025 and by nearly 30% in some areas over the next five years.
The North West tops the table for the biggest growth in house prices, with a 29.4% jump to an average of £226,627 (Nov 2024) predicted in the 5 years to January 2030, according to research from UOWN using ONS, Zoopla and Rightmove data. UOWN said this is down to buyers moving away to more affordable locations following huge increases in mortgage costs.
“High rates have had an oversized impact on the South in 2024 and this trend will continue in the coming years, driving homeowners and investors from more traditional hotspots to new areas”, says UOWN’s Founder and Managing Director, Haaris Ahmed.
“Some areas of the UK – including Leeds and Sheffield – have seen remarkable house price growth this year, as buyers perhaps seek out more affordable areas where house prices, despite increases, are still coming in under the national average.”
The report from UOWN’s 2025 UK Property Investment Guide highlights key factors contributing to the UK’s housing price surge: falling interest rates, stamp duty reforms, and sustained increases in real wages, which have collectively improved housing affordability.
One significant change involves stamp duty reforms, which will impact a much larger number of transactions. According to the 2025 UK Property Investment Guide, 83% of transactions are expected to incur stamp duty from April 2025, compared to just 49% under the current thresholds. This shift could significantly affect buying decisions.
With the UK housing market showing signs of recovery and stamp duty thresholds set to revert to their original levels on 1 April 2025, buyers and investors will be eager to know where the best opportunities lie for the year ahead.
When it comes to housing price growth in the UK property market, data points to Northern cities, indicating that investment opportunities are shifting away from traditional Southern strongholds near the capital. Buyers are increasingly competing for homes in historically more affordable areas further from London and its surrounding boroughs.
According to new data from the UOWN 2025 UK Property Investment Guide, cities in the North are set to see the strongest house price growth over the next five years, outperforming national averages and presenting significant opportunities for both buyers and investors.
Property investment platform UOWN says it expects the strongest house price growth to be in the “more affordable markets in the North” in the coming years, with areas such as the North West, North East, Humber, Yorkshire and Scotland to see a forecast 5% increase in prices in 2025.
One area in particular that stood out on the list was Skelmersdale in Lancashire.
With house prices in the North West expected to grow by 29.4% over the next five years, it’s no surprise that Skelmersdale in Lancashire ranks at the top of the list.
A vibrant town set in the Lancashire Valley on the River Tawd, it boasts strong transport links to major cities like Liverpool and Manchester while offering a balance of urban convenience and green spaces, with easy access to the picturesque Pennines.
Skelmersdale has seen rapid house price growth in the past year, with average newly-listed asking prices rising by 8.4% in 2024 – a trend expected to continue according to UOWN data.
A thriving hub of industry and retail, the town is surrounded by scenic wooded valleys and cloughs, with green open spaces and central woodlands weaving through the landscape.
For more information on the up-and-coming property hotspots, and what’s driving the market, download the full 2025 UOWN Property Investment Guide: https://www.uown.co/guides/uk-property-investment-guide