Where are the Best Housing Prices in the UK in 2025?
Housing prices in the UK vary dramatically across different regions, presenting unique opportunities for investors and homebuyers in 2025. This analysis cuts through the noise to reveal where the true value lies in today’s market, focusing on areas that offer the best combination of affordability and potential for growth.
Being aware of regional price differences is important when considering property investment. The purchase price not only affects your mortgage options but also impacts your potential return on investment. This guide will help you navigate the UK’s diverse property landscape, highlighting the most promising locations for your next property purchase.
Current UK Housing Market Overview
The UK property market in 2025 is not just determined by location and timing but also by other factors, including:
Property type (detached, semi-detached, terraced)
Size and square footage
Local market conditions
Economic factors
According to the UK HM Land Registry House Price Index, the average UK house price in December 2024 was £268,000. This authoritative index is jointly produced by the HM Land Registry, Registers of Scotland, Land and Property Services Northern Ireland, and the Office for National Statistics (ONS).
2025 Property Predictions
While precise predictions are challenging, recent trends offer insights into potential market movements. According to Rightmove, the average asking prices in the UK are set to increase by 4%, which is the largest predicted growth since 2021, and anticipates around 1.15 million property completions in 2025, an increase from recent years.
Tenant demand also doubled pre-pandemic levels in 2024, and the rental sector is expected to remain strong. Rental prices are predicted to grow by around 3% in 2025.
UK mortgage rates are expected to ease in 2025, with average 2-year and 5-year fixed rates settling around 4%. This decline, coupled with wage growth, is likely to boost buyer confidence, particularly for first-time buyers.
Several factors will impact the property market:
Interest Rate Cuts: The Bank of England is expected to take a “gradual and careful” approach to reducing the base rate, with economists predicting roughly one cut per quarter throughout 2025, to support growth and squash inflation.
Stamp Duty Changes: From April 2025, changes to stamp duty thresholds could influence buyer behaviour, potentially causing a rush of activity before the changes take effect.
Government Policies: Initiatives aimed at increasing housing supply, like greenbelt development and higher local building targets, could positively impact the market.
While the property market shows signs of stabilising, regional variations continue. Savills forecasts stronger growth in regions such as the North West, North East, Scotland, and Yorkshire and the Humber, with prices expected to rise by 5% in these areas. In contrast, the East of England and South West are predicted to see more modest increases of 2.5%
Potential buyers and investors should consider local market conditions and their financial situations when purchasing their first property or expanding their portfolio in 2025.
Which Region in the UK Has the Cheapest Houses in 2025?
Property prices will continue to fluctuate month on month, as they always have. For example, according to the Zoopla UK house price index, the average house price growth from November 2024 was £267,100 to £267,200 in January 2025.
Where the property is located in the UK can have a huge effect on its price. This is especially true for the North and the South. You can typically expect property in the North of the UK to have a lower selling price than the South.
RegionAverage Price December 2024Year on Year (YOY) House Price InflationMonthly Change Average Days to SellScotland£185,5732.7%-3.9%36North East£186,0134.2%-1.9%57Yorkshire and the Humber£243,4562.5%-2.5%66North West£258,2053.8%-0.6%64Wales£258,4872.9%-0.6%78East Midlands£280,1531.6%-2.3%71West Midlands£283,7330.7%-1.5%65South West£373,2231.0%-0.4%71East of England £407,4640.6%-2.2%69South East£466,9712.5%-1.0%69London£661,444-0.8%-3.2%67
North East Property Investments are significantly more affordable than most other UK regions. The lower entry costs mean investors can acquire properties at a fraction of what you would pay in more expensive areas like London or the South East. The North East’s ongoing urban regeneration projects and new developments are creating opportunities for investors to capitalise on areas with a lot of growth potential.
Top 10 Cheapest Places to Purchase Property in the UK
In regions with the most affordable property prices, buyers can secure properties at a fraction of the cost compared to other parts of the UK. This affordability allows for the purchase of larger homes with more features, enhancing the overall value.
From this house price data, investing in these areas can lead to greater returns if property values rise over time. Lower purchase prices can result in higher rental yields, making these investments particularly attractive for those looking to maximise their income potential.
LocationAreaPostcodeLowest Average PriceNorth EastSunderlandSR1£56,100Yorkshire and the HumberBradfordBD1£59,400North EastShildonDL4£70,000North EastMiddlesboroughTS1£72,272Yorkshire and the HumberGrimsbyDN31£73,868North EastMiddlesboroughTS3£84,107North EastHullHU2£90,400North EastPeterleeSR8£92,529Yorkshire and the HumberGrimsbyDN32£109,080North EastSunderland SR5£112,342
Source: A combination of analyses from Plumplot, Rightmove and Zoopla
Sunderland, Tyne and Wear
Sunderland is the cheapest city to buy a property in the UK in 2025. It sits along the coastline of the North East, with property in the SR1 postcode on the market for around £56,100. It offers excellent links to Newcastle by metro or car and is the perfect location for people looking for nature and outdoor activities.
Bradford, West Yorkshire
Bradford is the second cheapest city to purchase a property. Homes can be bought for less than £60,000 in some areas of the BD1 postcode. It’s a popular destination for first-time buyers, renters, and investors and mostly consists of period homes from the Victorian era.
Bradford also offers excellent connection links to the city of Leeds, either 20-30 minutes via train or car, which is perfect for buyers who can’t afford the much steeper prices that purchasing in Leeds comes with.
Shildon, County Durham,
Shildon, based in County Durham, offers great property prices. It is a quiet town that offers excellent links to the centre of Durham without the hefty price tag.
The town is close to other cities such as Darlington, Newcastle, Sunderland and Middlesbrough, which makes it a perfect place for commuters while offering a quieter, calmer lifestyle than the hustle and bustle of the cities.
Grimsby, North East Lincolnshire
Grimsby is a port town with charm, a rich heritage, and a fishing history. It’s a place where first-time buyers are looking to purchase a more affordable home at a relaxed pace, and it is ideal for home workers.
Middlesbrough, North Yorkshire
4 and 6 on the list of the cheapest places in Middlesbrough. The TS1 postcode offers property prices from £72,272, and in the TS3 area, prices start from around £84,107. Middlesbrough offers a much more affordable option for anyone employed in the northeast regions of Newcastle and Durham to step onto the property ladder.
Middlesbrough has many job opportunities and is within easy reach of Durham Tees Valley’s local airport, which is seeing huge investment and expansion. It is also home to a university, which could make it an ideal place to invest in rental properties.
Peterlee, County Durham
Peterlee in Country Durham is last on our list of affordable places to purchase a property, whether for investment or stepping onto the property ladder, and prices start from just over £92,529. It also offers beautiful countryside and abundant woodland areas perfect for walking. The connection links to the local cities of Durham, Sunderland and Newcastle are also excellent.
Interested in exploring high-yield UK property opportunities?
While the best place for property investment in the UK can vary depending on the purchaser’s goals, the North East offers the best purchase price and gives you more for your money. Lower purchase prices can provide excellent opportunities to generate solid and higher returns on the investment.
Thanks to house prices increasing and current market growth, the UK housing market in 2025 offers some attractive options for purchasing a property for personal use or investment, and there doesn’t seem to be any signs of slowing down.
Reach out to learn more about current opportunities in the UK investment property market.
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