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PROPERTY PRICES ARE INCREASING IN Q3. RESERVE BEFORE 25th JUNE TO SECURE OLD PRICING

The Results Are In: Average House Prices Increased by £7.5k In 2024

With 2024 behind us, property investors and landlords have much to consider. Zoopla’s latest data reveals that property prices across the UK have risen by an average of approximately £7,500. However, this growth is not uniform, presenting a clear north-south divide. For landlords looking to expand their portfolios, the North West and North East have emerged as the standout regions, offering significant opportunities for growth and returns. Here’s why.

The Regional Breakdown: Exceptional Growth in the North

While the overall UK housing market saw growth, the North West and North East stood out with remarkable increases in property values. The North West experienced an average rise of £4,400, with 63% of properties increasing in value. Similarly, the North East saw an average gain of £4,300, with an impressive 68% of properties appreciating in value. These figures dwarf the minimal growth seen in southern regions and highlight the north’s strong investment potential.

Key Highlights for Northern Regions in 2024:

  • North West: 63% of properties increased in value, with only 21% experiencing a decline. This robust growth underscores the region’s appeal for property investors seeking reliable returns.

  • North East: Leading the way, 68% of properties saw price rises, with just 19% facing decreases. This makes the North East one of the most promising regions for capital appreciation.

In contrast, southern regions, including the South East and East of England, saw average price declines of £900 and £1,300 respectively.

Steven Hickey, Director at Find UK Property comments: “The disparity highlights the north’s relative affordability and resilience in the current market. With property prices in the south going backwards or standing still at best, it’s clear that we’ve seen a tipping point in terms of what people can afford or are willing to pay in the current climate. More affordable regions which are all in the north, still have more room to grow.” 

Opportunities for Property Investors

The data underscores the significant opportunities available in the North West and North East. Richard Donnell, Executive Director at Zoopla, explains, “There is headroom for prices to increase in markets where housing is affordable compared to incomes, covering many parts of northern England and Scotland.”

Affordability is a key driver of these trends. Northern regions offer lower house prices relative to average incomes, making them attractive to both first-time buyers and renters. For landlords, this translates to higher demand and potential for steady rental yields.

Notable Areas for Investment in the North:

  • Cheshire: Towns like Congleton and Knutsford in the North West saw significant value gains, with six in 10 homes increasing by £10,000 or more.

  • North East: With seven in 10 homeowners seeing their property values rise, the region continues to deliver strong returns for investors.

  • Yorkshire and Scotland: These regions also performed well, with six in 10 homes appreciating in value.

The Outlook for 2025

Looking ahead, the housing market’s momentum is expected to continue into 2025. Despite economic uncertainties and static mortgage rates, Zoopla predicts an increase in home moves compared to 2024. For property investors, this presents an opportunity to capitalise on market dynamics, particularly in affordable regions where demand remains robust.

Donnell notes, “In contrast to the North, affordability remains a constraint on price rises in Southern England. Faster income growth is helping to repair affordability, supporting moving decisions in 2025.”

Key Takeaways for Landlords

  1. Focus on the North: The North West and North East are leading the way in property value growth, making them ideal for investment.

  2. Leverage Affordability: These regions offer affordable entry points and strong potential for capital appreciation, driven by demand from buyers and renters alike.

  3. Diversify Your Portfolio: Investors in southern regions should consider expanding into northern markets to take advantage of these growth trends.

As 2025 begins, the UK property market continues to offer opportunities for savvy investors. By focusing on the exceptional performance of the North West and North East, landlords can position themselves for success in the evolving market.

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