UK Property Market Research 2025: Top Investment Areas in the North for 2026 Growth

Property investors and landlords have plenty to think about as 2025 advances when assessing the UK housing scene. Recent Zoopla data shows that property prices all throughout the UK have grown on average about £7,500. But this expansion is not the same everywhere, which clearly distinguishes regions. In terms of development and investment potential especially, the North East and North West have shown outstanding performance. The newest trends are broken out here along with the reasons these areas have fascinating prospects.

North vs South: The Regional Shift

While property prices in the UK have typically increased, the development has not been consistent. Leading the pace with outstanding pricing rises are the North West and North East. For example, the North West experienced an average rise of £4,400; 63% of the homes valued there appreciated. The North East had a similar increase, averaging £4,300 and having an even greater percentage—68%—of houses experiencing development. These developments stand in sharp contrast to the Southern areas, where price rises have been few and sometimes property prices have even dropped.

Key Figures for 2025 and Beyond

• North West: Just 21% of houses witnessed a fall; 63% saw price rises.
• North East: Of the properties valued in North East, barely 19% indicate price cuts; 68% are appreciated overall.

By contrast, average reductions of £900 and £1,300 respectively in the South East and East of England. For property investors, this tendency is making Northern areas more appealing.

Director Find UK Property Steven Hickey notes on this trend: “The difference between north and south underscores the affordability and durability of northern locations. Although southern prices are either flat or dropping, the North still has plenty of space for development.”

Prospect for Investments in the North

For those looking for real estate, the North East and North West provide great promise. Richard Donnell, Executive Director of Zoopla, said “There is lots of space for development in places where property remains inexpensive compared to average salaries, and that includes many regions of northern England and Scotland.”

For first-time purchasers as well as investors, the relative affordability of homes in the North compared to Southern regions implies more demand and the chance for consistent rental profit for landlords.

Key Investment Areas in the North

• Cheshire (North West): With over 60% of properties appreciating by £10,000 or more, towns such as Congleton and Knutsford showed a clear rise in property prices.
• North East: Seven in ten houses observed a value increase, confirming the area’s potential for property investors in real estate.
• Yorkshire and Scotland: Both areas are performing very well, with 60% of properties experiencing a value increase.

Looking Ahead: Outlook for Property Markets in 2026

Looking ahead to 2026, the UK housing market is projected to continue, even in the face of consistent mortgage rates and economic concerns. Compared to 2025, Zoopla forecasts a rise in estate movements, presenting a good opportunity for property investors to gain high income from the shifting UK market, especially in more reasonably priced areas where demand remains strong.

Richard Donnell notes, “Affordability concerns in Southern England still restrict price rises, unlike in the North. Faster wage growth in the North, however, is helping to restore affordability—which is probably going to enable greater migration in 2026.”

Important Learnings for Property Owners

• Pay attention to Northern Markets: The North East and North West are great areas for investment as property prices are rising significantly here.
• Leverage Affordability: These areas appeal to renters as well as purchasers because of their low cost and potential for capital gain.
• Investors in the South: Might choose to diversify their portfolios by investing in northern areas to benefit from these interesting development patterns.

Conclusion

For those ready to go beyond the conventional Southern hotspots, the UK property market offers several prospects as 2025 progresses and 2026 draws near. Smart investors may position themselves to maximize the development prospects these areas provide by investing in the North West and North East, thereby profiting from the affordability that still drives demand. Though the market is changing, the North is likely to remain a significant participant for many years with the correct approach.