House prices are set to rise across the UK in 2025, with average prices rising by £5,992.
Zoopla’s study of 120 postal areas shows significant differences in growth potential in different regions, based on affordability, selling speed, and price cuts.
The analysis shows Scotland dominating the rankings, claiming nine of the top ten spots for projected house price growth in 2025.
Motherwell leads the Scottish surge, with house prices already increasing by 3.8 per cent and averaging £129,000 in the postal area.
The dominance of Scottish markets is attributed to homes being among the cheapest in the UK compared to incomes, coupled with faster selling times due to Scotland’s distinct property sales system.
Even when removing the selling speed factor from rankings, Scottish areas still secure eight out of ten top positions.
The top five UK housing in England
GETTY
Richard Donnell, executive director at Zoopla, explained that while Scotland shows the strongest outlook, there is “a spread right across the UK reflecting the demand for and affordability of homes.”
The top five UK housing markets are concentrated in Eastern Scotland, clustered around Glasgow:
- Following Motherwell’s lead position, Glasgow ranks second with average prices of £157,764 and 2.9 per cent growth.
- Paisley takes third place, with homes averaging £134,472 and showing 1.3 per cent growth.
- Falkirk and Kirkcaldy round out the top five, with average prices of £164,106 and £164,694 respectively.
- Falkirk is showing particularly strong momentum with 3.5 per cent growth, while Kirkcaldy follows closely at 3.3 per cent.
Aberdeen stands as a notable exception to Scotland’s success, struggling due to reduced investment in its oil and gas sector.
The top five UK housing in England:
- Newcastle leads the markets with the strongest growth prospects, with average prices of £163,578 and 2.1 per cent growth.
- Leeds follows closely in second place for English markets, with homes averaging £221,636.
- Stoke-on-Trent, Wigan, and Carlisle complete the top five English prospects, with Wigan already showing impressive growth of five per cent annually.
Wolverhampton stands out as the sole West Midlands representative among the top performers, with house prices at £201,000 – 13 per cent below the regional average.
These northern areas benefit from housing affordability below the national average, creating room for price growth as local economies expand.
LATEST DEVELOPMENTS:
The areas with the lowest rankings for 2025 are concentrated in inner London and Southern England.
Central, South West, North West and West London sit at the bottom of rankings, with average house prices exceeding £635,000 – more than double the UK average.
The West Central London postal area ranks lowest, with average prices of £850,357 and properties taking 52 days to sell. Coastal towns in Southern England, including Bournemouth and Torquay, also feature in the bottom ten markets.
However, some London areas fare better, with Sutton in outer South London showing stronger performance, taking just 33 days to sell properties.
Despite lower rankings, Zoopla notes London’s prospects have improved compared to recent years.
Donnell said: “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.
“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 the prospects in London are much improved on those over recent years.”
Donnell advises sellers to consider local market conditions when pricing their homes in 2025.