House prices: The regions tipped to see the biggest rise in 2025
House prices are forecast to increase across the UK this year, but with significant regional variation, which region will see the biggest rise in property prices?
UK house prices may well be poised for growth in 2025, but some regions could grow at a faster rate than others.
House prices in Scotland and northern English regions are expected to rise the fastest out of all UK regions in 2025, according to real estate firm Savills, while the South West and East of England are expected to see the slowest rate of growth.
Savills research suggests that house prices in Scotland and the North of England will grow twice as fast as those in the South West and the East of England.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
However, this view isn’t shared universally. Estate agent and property services company Hamptons thinks that London will lead the UK’s house price growth both in 2025 and through 2027, as the housing market moves into a new cycle.
In general, “the housing market tends to be quite cyclical”, Aneisha Beveridge, head of research at Hamptons, tells MoneyWeek. “The last house price cycle began following the 2008 financial crash. London property prices recovered quickly and it was the top performer up until around 2016.
“Since then, prices in the rest of the country have been catching up, but we think that cycle has pretty much come to an end now.”
You might be wondering whether or not 2025 will be a good year to buy a house. The answer depends on exactly where you live: there are some significant differences across different regions of the UK, both in terms of housing costs and the best places to live.
As we will see, though, two of the country’s foremost real estate firms have differing views on which regions will outperform this year.
Savills: Scotland and northern England to see fastest growth
Savills expects mainstream house prices to increase by 5.0% in the North West, the North East, Scotland, and Yorkshire and the Humber. Prices in the East of England and the South West, however, are forecast to increase just 2.5% during the year.
Other southern regions are also expected to see relatively slow house price growth this year, with London and the South East both pegged for 3.0% growth during 2025. The West Midlands is expected to be the next fastest-growing region after the joint-top four, at 4.5%.
Over the longer term, Savills expects house prices in the North West to increase 29.4% in the five years to 2029, with the North East and Yorkshire and the Humber both expected to see house prices rise by 28.2% over this period.
London is expected to post the slowest rate of house price growth, 17.1%, during those five years.
Swipe to scroll horizontally
Region
2025 forecast
2024-2029 forecast
North West
5.0%
29.4%
North East
5.0%
28.2%
Yorkshire and the Humber
5.0%
28.2%
West Midlands
4.5%
26.4%
Scotland
5.0%
25.8%
Wales
3.5%
25.2%
East Midlands
4.0%
24.6%
UK average
4.0%
23.4%
South West
2.5%
21.6%
East of England
2.5%
19.9%
South East
3.0%
17.6%
London
3.0%
17.1%
Hamptons: London will lead a new housing market cycle
In contrast with Savills’ forecasts, Hamptons expects southern regions to post the strongest house price growth this year. In the year to Q4 2025, Hamptons forecasts house prices to increase 4.5% in London – faster than any other region in the UK – followed by 3.5% in the South West and the East of England.
“The main reason why we think London will begin to outperform this year is because it’s underperformed the rest of the country for around the last decade,” says Beveridge. “London property prices also fell more in 2023 when mortgage rates spiked. Prices neared growth again in 2024, but we expect them to pick up a bit more pace in 2025 as that recovery continues and mortgage rates settle a little lower.”
Hamptons expects the North West, Wales, Scotland and Yorkshire and the Humber to post the slowest house price growth, with all forecast to increase 2.0% this year.
Between 2024 and 2027, Hamptons expects London and the South East of England to post the strongest house price growth, both at 14.5% over the period. At the other end of the scale, house prices in Wales are expected to increase just 9.0% over the period.
However, Beveridge doesn’t expect London house prices to run away from other UK regions, as they have in previous cycles. “Rather, higher mortgage rates which have added to affordability pressures, will keep a bit of a lid on any future price growth in the capital,” she says.
Swipe to scroll horizontally
Region
2025 forecast
2024-2027 forecast
London
4.0%
14.5%
South East
3.5%
14.5%
East of England
3.5%
14.0%
South West
3.0%
13.0%
Scotland
2%
12.5%
UK average
3%
12.5%
West Midlands
3%
12%
North East
3%
12%
East Midlands
3%
11.5%
Yorkshire and the Humber
2%
11.%
North West
2%
10.5%
Wales
2%
9%
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Dan is a financial journalist who, prior to joining MoneyWeek, spent five years writing for OPTO, an investment magazine focused on growth and technology stocks, ETFs and thematic investing.
Before becoming a writer, Dan spent six years working in talent acquisition in the tech sector, including for credit scoring start-up ClearScore where he first developed an interest in personal finance.
Dan studied Social Anthropology and Management at Sidney Sussex College and the Judge Business School, Cambridge University. Outside finance, he also enjoys travel writing, and has edited two published travel books.
Reducing cash ISA limit will make lending difficult and expensive, warn providers
Nvidia becomes world's first $4 trillion company
