New data from property platform Zoopla suggests that Scotland and Northern England will outpace the rest of the UK in house price gains in 2025, as buyers and sellers in these regions benefit from lower average property prices and faster sales times.
Zoopla’s analysis, which covered 120 UK postal areas, evaluated key indicators such as housing affordability, time on the market, asking price adjustments, and the proportion of property listings over six months old. Each factor was weighted to produce an overall ranking of areas likely to experience above-average price rises in 2025.
Scotland leads the pack
Scotland dominates Zoopla’s league table, taking nine of the top ten spots. Heading the list is Motherwell (ML), where average prices stand at an accessible £129,000 but have risen by 3.8 per cent – well above the 2.6 per cent Scottish average. Glasgow, Paisley, Falkirk and Kirkcaldy round out the country’s leading locations, all boasting quick sales and relatively affordable homes.
• Motherwell: 3.8% annual growth, 13 days to sell
• Glasgow: 2.9% annual growth, 15 days to sell
• Paisley: 1.3% annual growth, 16 days to sell
• Falkirk: 3.5% annual growth, 14 days to sell
• Kirkcaldy: 3.3% annual growth, 17 days to sell
At the other end of Scotland’s rankings, Aberdeen lags behind, due in large part to ongoing challenges in the local oil and gas sector.
Northern England on the rise
Postcodes in Northern England also fare strongly. Newcastle, Leeds, Stoke-on-Trent, Wigan and Carlisle all receive high marks, supported by appealing affordability levels and consistent local economic conditions. Prices in these regions are already showing healthy annual growth of two to five per cent, with Wigan in particular posting a remarkable five per cent rise.
Wolverhampton similarly features near the top of the English rankings. Its comparatively low share of major asking price cuts and average property values of around £201,000 – around 13 per cent below the West Midlands average – mark it out as a market to watch in 2025.
Southern markets still adjusting
Most of Southern England appears lower down Zoopla’s 2025 growth outlook. Higher house prices, coupled with elevated mortgage rates, have dented demand and stretched selling times. Central, South West, North West and West London postcodes are among those struggling, held back by hefty average price tags upwards of £635,000 and protracted marketing periods.
Outer London, on the other hand, performs relatively better. Areas like Sutton stand out for faster sales and fewer significant price reductions than higher-priced London zones. Coastal hubs such as Bournemouth and Torquay also come in towards the bottom of the rankings, as the pandemic-driven surge for seaside living wanes and prospective tax changes impact second-home purchases.
Wales: Cardiff and Newport in focus
Wales has recorded impressive gains of 30 per cent since 2020, far outpacing London’s eight per cent increase over the same period. Within Wales, Cardiff and Newport hold the greatest potential for price growth, thanks to their proximity to major employment centres. By contrast, parts of mid and northern Wales that flourished during the pandemic’s ‘race for space’ are seeing a cooldown in buyer interest.
Northern Ireland outperforms
Northern Ireland remains the UK’s fastest-growing region for house prices, with annual gains approaching seven per cent. Historically lower property values and improvements to post-Brexit trading arrangements provide a springboard for further rises. The BT postal area ranks 19th in Zoopla’s list, characterised by brisk sales – at an average of 20 days on the market – and notably fewer large asking price reductions.
Richard Donnell, Executive Director at Zoopla, comments: “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.
“Our analysis of key local market indicators reveals the areas where there is scope for increased numbers of home moves and house prices to increase at an above-average rate over 2025. While the outlook is best in Scotland and Northern England, there is a spread right across the UK reflecting the demand for and affordability of homes.
“Home values are likely to rise at a lower rate in areas towards the bottom of the rankings. Value for money is slowly returning to the London property market after a decade of below-average growth, so while many London areas are towards the bottom of the rankings, prospects in the capital are much improved on recent years.
“Serious sellers looking to move home in 2025 need to consider the local market fundamentals which will have an impact on how you price your home. Speaking to local agents is the best way to get insight into local conditions and how to price your home for a sale.”
