Value of a Property Driving Market Momentum

Value of a property continues to energise and revitalise the UK housing market this vibrant summer season. Yet, beneath the national figures, a striking regional divide remains. Meanwhile, parts of the South still suffer from sluggish growth and prohibitive costs. In contrast, the North West and Yorkshire, with the Humber, have firmly established themselves as the nation’s top-performing housing markets.

Recent data highlights that these more affordable regions are not only delivering better value for money but are also leading in annual price growth. For buyers and investors alike, the allure of the North is stronger than ever.

Affordable Regions Outperforming the Rest

According to Halifax’s latest House Price Index, UK house prices rose by 0.4% month-on-month in the most recent data, with annual growth standing at 2.4%. This puts the average property price across the country at £298,237. However, the North West and Yorkshire achieved an impressive 4% annual increase, clearly outpacing the national average. Consequently, seasoned property investors are taking notice of these standout regional gains.

One reason for this regional out-performance lies in affordability. Despite their rapid growth, average prices remain well below the national figure. Halifax’s figures place the average property in the North West at £242,293, while in Yorkshire and the Humber it stands even lower at £227,928. This combination of lower entry prices and consistent appreciation has created a sweet spot for both first-time buyers and portfolio investors.

The Appeal of Better Value for Money: Value of a Property

In the current economic climate, affordability is a powerful driver of market activity. Higher wages and a recent easing in mortgage rates have boosted purchasing power, allowing more people to enter the market. For many, this means looking beyond London and the South East – where high prices limit options – to regions where budgets stretch further without compromising on lifestyle.

The North West and Yorkshire not only provide larger homes for the same investment but also offer attractive rental yields for landlords. Meanwhile, people are migrating steadily from the South to more affordable areas. Consequently, this trend boosts local demand and supports sustained house‑price growth.

Stronger Prospects for the Years Ahead

Industry analysts believe that the housing market will see further steady growth in 2025 and beyond. Looking ahead, analysts anticipate the North West and Yorkshire will continue to outperform other regions over the next five years. Furthermore, their advantage stems from strong affordability, regeneration investment, and growing employment prospects that drive demand.

Birmingham, in the Midlands, shares some of these advantages and has also recorded strong performance. However, the North still holds a clear edge when it comes to the potential for long-term returns, especially for investors looking at capital growth alongside rental income.

Cities Leading the Charge in the North West

Manchester – A Capital of Growth

Manchester consistently ranks among the UK’s best-performing property markets. Its appeal is rooted in a combination of factors: a thriving job market, a world-class university sector, and significant infrastructure upgrades. The city’s ongoing regeneration – from commercial hubs to residential developments – has positioned it as a prime target for those seeking capital appreciation.

Investors focusing on long-term growth have found Manchester’s trajectory hard to ignore. It is regularly highlighted as a hotspot for buy-to-let investment, with strong demand from both young professionals and students.

Liverpool – A Rental Yield Leader

Liverpool’s reputation as a high-yield city remains unshaken. The local rental market benefits from a vibrant student population, growing employment opportunities, and a cost of living that attracts long-term residents. The city frequently ranks at the top for rental returns, making it especially appealing to landlords aiming for strong income generation.

Alongside its rental advantages, Liverpool is undergoing a wave of regeneration, with new developments and cultural investments adding to its appeal.

Yorkshire’s Star Performers: Value of a Property

Leeds – The Economic Powerhouse

As Yorkshire’s largest city, Leeds has developed a robust housing market that continues to defy national slowdowns. The city’s economy is underpinned by finance, legal services, technology, and education, creating sustained demand for housing.

Major regeneration projects are reshaping its urban landscape, introducing new residential districts, and improving infrastructure. These changes are not only improving the city for residents but also offering compelling opportunities for investors.

Sheffield – Affordable with Strong Returns

Sheffield combines affordability with steady growth, making it a favourite among investors seeking a balance between entry price and potential returns. Moreover, the city has enjoyed house price growth above the national average in recent years, driven by regeneration efforts. Furthermore, a strong rental market and large student population continue to support growth and investor interest.

Its property market has proven resilient, even during national slowdowns, further reinforcing its reputation as a safe and profitable investment destination.

Why the North-South Divide Matters for Investors: Value of a Property

The continuing North-South divide in house price performance is more than just a statistical observation – it’s a practical guide for where future opportunities may lie. However, southern markets struggle with high entry costs and sluggish growth limiting their potential. Meanwhile, the North offers unmatched affordability, growth opportunities and strong rental demand.

Investors weighing their options are increasingly drawn to areas where their capital can work harder. In the North West and Yorkshire, this means properties that not only cost less to acquire but are also appreciating at a faster rate, delivering stronger overall returns.

Looking Ahead – Sustaining Growth in Northern Markets

The outlook for the North West and Yorkshire remains positive. Wage growth, improving affordability, and a steady pipeline of regeneration projects are expected to sustain demand. With property prices still comfortably below the national average, there is room for further appreciation before affordability becomes a barrier.

Furthermore, buyers and investors must look beyond the southern hotspots to recognise the North’s emerging market leadership. Consequently, the North not only matches the UK housing market – it now defines performance and showcases strong growth potential.