New research from property platform Zoopla suggests that Scotland and Northern England are best positioned for house price growth in 2025, as these regions benefit from lower average property prices and faster sales.
Meanwhile, markets across Southern England are still feeling the pinch of elevated mortgage rates, resulting in longer selling times and larger asking price reductions.
Zoopla’s analysis evaluated 120 UK postal areas, using indicators such as housing affordability, time on the market, asking price adjustments and the proportion of stock listed for over six months. Each factor was weighted to produce an overall ranking of markets likely to see above-average growth in 2025.
Scotland leads the way
Scotland takes nine of the top ten spots, led by the Motherwell (ML) postal area, where average prices are at a modest £129,000 but rising at 3.8 per cent – considerably higher than the 2.6 per cent Scottish average. Other Scottish hotspots include Glasgow, Paisley, Falkirk and Kirkcaldy. Across these areas, quick sales and relatively affordable homes underpin the prospects for continued price increases.
- 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 opposite end of the scale in Scotland, Aberdeen lags behind, reflecting challenges in the local oil and gas sector.
Northern England on the rise
North of England postal areas also feature strongly. Newcastle, Leeds, Stoke-on-Trent, Wigan and Carlisle all rank highly, driven by favourable affordability levels and consistent local economic performance. House prices in these locations are already moving upwards by two to five per cent, with Wigan notching an impressive five per cent annual uplift.
Wolverhampton joins them as one of the few non-northern regions near the top of the English ranking, boasting low proportions of major asking price cuts and prices around £201,000 – 13 per cent below the West Midlands average.
Southern markets still adjusting
By contrast, much of Southern England remains at the lower end of Zoopla’s 2025 growth prospects. High property prices and higher mortgage rates have curbed demand and driven up time to sell. Central, South West, North West and West London postal areas languish near the bottom of the league table, largely owing to average house prices exceeding £635,000 and protracted selling periods.
Outer London fares better, with areas like Sutton standing out for shorter sales times and fewer price reductions compared to inner and higher-priced London markets. Coastal towns such as Bournemouth and Torquay also feature among the lowest-ranked areas, as the pandemic-era rush to seaside living begins to reverse and upcoming tax changes affect second-home markets.
Wales: Cardiff and Newport in the spotlight
In Wales, areas close to major employment hubs, such as Cardiff and Newport, rank highest for price growth potential. Meanwhile, markets in mid and northern Wales that soared during the pandemic’s ‘race for space’ have seen cooling demand. Still, Wales overall is up by 30 per cent since 2020, significantly outpacing London’s eight per cent growth over the same period.
Northern Ireland outperforms
Northern Ireland remains the fastest-rising region, with annual growth nearing seven per cent. Average values here have historically lagged behind the rest of the UK, creating potential for a faster rebound, especially following improved post-Brexit trading arrangements. The BT postal area ranks 19th overall, with brisk sales (20 days on average) and fewer major asking price cuts.
Expert commentary
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.”