Buying a Property

Property price growth up north set to outstrip London

While London is unlikely to ever lose its place as the UK's house price capital, the city looks set to be left behind when it comes to house price growth in the first half of this decade. Yorkshire and other northern regions look set for a house price boom. Investors and homeowners looking for capital gains may wish to cast their gaze further north than ever before.

 - 3 Min Read
Last updated and fact checked:
Property price growth up north set to outstrip London
Editorial Note: We earn a commission from partner links on Pension Times. Commissions do not affect our writers’ or editors’ opinions or evaluations. Read our full affiliate disclosure here.

There is some good news for the property industry and homeowners across the UK. Leading property agency Savills has reported that the housing market is on an upward trend, contrary to the industry's initially bleak outlook for 2021. However, the Covid-19 vaccination rollout's success and the roadmap to exit lockdown have both had a positive impact and helped to trigger house price growth.

Savills went on to say that property prices in Yorkshire and across the northwest could see significant increases over the next five years. Data and predictions from Savills suggest prices in these areas could increase by nearly 30%, more than twice as much as they are projected to in London.

Outlook is much brighter for the property market

Savills senior researcher Lucian Cook said the property market's outlook has been improving since the start of this year. Cook credited this to the success of the vaccination programme, among other things.

Cook said predictions for the market had not been great at the end of last year, but added, "The outlook has improved since the beginning of the year given the speed of the vaccination programme, the expected relaxation of social distancing measures and government support for both jobs and the housing market.”

What are the predictions?

Savills says property prices across the nation are expected to increase by 4% this year. Before the end of 2025, they are projected to rise by 21.1%. If these predictions are correct, the UK's average house price would increase to £279,644 by this time.

The northwest of the country is set to see the most significant increases, far outpacing the nation's capital. Property prices across the northwest could rise by close to 29%, which would bring the average property price in the area to £227,879. In Yorkshire and Humberside, the increase is predicted to be 28.2%, with average house prices rising to £220,921.

Predicted increases in these areas are set to be significantly higher than in London. According to Savills, prices in the capital could increase by 12.6% over the next five years, taking the average property price to £547,868.

The number of property transactions is expected to increase significantly this year compared to last. In 2020, the UK saw one million property transactions take place. However, in 2021, this figure is expected to rise to 1.4 million. Next year, property transactions are predicted to decrease slightly to 1.25 million.

According to Savills, low interest rates, an extension to the stamp duty holiday, and increased capacity for growth are all contributory factors for the upturn in the property market.

Image Credit: Thomas Tolkien, CC BY-SA 2.0

The content on is provided for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, you should consult a financial adviser that is registered with the Financial Conduct Authority. Any references to products, offers, rates, and services from third parties or those advertised are served by those third parties and are subject to change. We may have financial relationships with some of the companies mentioned on this website. We strive to write accurate and genuine reviews and articles, and all views and opinions expressed are solely those of the authors. We are not regulated by the Financial Conduct Authority to provide advice, to act as an authorised introducer, or to otherwise sell any financial services or products. However, we endeavour to only link to and highlight brands that are authorised and regulated by the Financial Conduct Authority and/or the Prudential Regulation Authority, and where your money will be protected by the Financial Services Compensation Scheme should you choose to buy a product or service from that particular brand.
See More