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The UK’s top property hotspots in 2025

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The UK’s top property hotspots in 2025

2025 looks set to be (another) challenging year for the property market. Affordability is still a key issue with house prices being affected across the country because of higher mortgage costs.

As a result, estate agent Savills has suggested that there will be a 4% average increase in property prices across the whole of the UK in 2025, compared to the 2.5% increase predicted by Knight Frank.

The latter flags that “the more affordable markets in the north” will experience the strongest house price growth in the coming years, with the North West, North East, Yorkshire and the Humber, and Scotland all predicted to see house prices rise be 5% next year.

In contrast, the South will experience much lower growth. The South West and East of England will see prices up by 2.5%, with London and the South East only faring marginally better with a 3% growth.

While this research shows what’s happening at a regional level, we asked five property experts for their take on where to buy in the UK next year.

With Labour adding VAT to school fees from 1 January, effectively increasing the costs of private schooling by 20%, an increasing number of buyers will be looking for areas with outstanding state schools.

“The increase in VAT on private school fees is already making waves in the property market. Families looking to offset costs are beginning to downsize or relocate to areas with outstanding state schools,” says Sarah Walker, independent estate agent in Richmond.

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“This shift will undoubtedly create hotspots around top-performing state schools, driving up competition and prices in these catchments.”

With many priced out of the South and South East, the North offers great value for money, whether you’re a landlord or owner-occupier.

“The North remains a goldmine for value in 2025,” says Walker. “Cities like Manchester and Leeds are still seeing strong rental yields, while areas surrounding them — such as Bolton and Huddersfield — offer relatively affordable prices with the potential for capital growth.”

Smart, walkable towns and cities, like Bath in Somerset, are set to be popular in 2025. · David Clapp via Getty Images

Wherever you are in the country, North or South, commuter towns are a great option in 2025. Their combination of local amenities, spacious homes and slick transport links mean they tick all the boxes for buyers.

“Commuter towns like Reading, Slough, and Basingstoke provide great opportunities as workers gravitate back towards hybrid or full-time office roles, pushing up demand,” says Walker.

“They’re benefiting from the post-pandemic hybrid work model, which allows buyers to live further out without sacrificing job access. Suburbs are next in line, with growing demand for family homes pushing prices up, particularly where schools and amenities are strong.”

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