North West property investors have achieved the greatest capital appreciation over the past five years, with trends indicating continued growth in the region.
Location has always been one of the most important factors for successful property investment in the UK, influencing both house price patterns and the strength of the rental market.
For those hoping to achieve the greatest capital gains, eschewing London for the North West property market might have led to the highest returns in the country for some investors, with the region enjoying the biggest house price rises of any location in the UK.
North West property prices have surged by around 29% since March 2020, according to the latest figures from home.co.uk, compared with the national average for England and Wales of around 15% growth. By contrast, Greater London has seen average prices rise by around 5% over the same period, although within the capital there will be wide variations.
The table below shows how the regions compare, with data taken from the home.co.uk asking price index in March 2025:
A stark north/south divide
Overall, the report shows a healthy and resilient market across the whole of the UK, with price growth being sustained despite the ups and downs of the recent years including wider international uncertainty, political changes and economic difficulties.
Rising interest rates has been an important factor too, as this has had a direct impact on affordability. It makes property buying and investing a more expensive choice for those who require mortgage borrowing, which for investors must be offset either by the prospect of strong capital growth or high yields for rental properties.
This has played a role in the continuing north/south divide being experienced by the housing market, and is a major reason why North West property has held up against wider turbulence. Homes are not only cheaper on average than in the south of the country but, as can be seen in the figures, have also shown the greatest propensity for growth.
According to home.co.uk, the West Midlands, Yorkshire and the Humber and the North West property markets are all outperforming at the moment, having posted the largest month-on-month house price gains of 1%, 0.9% and 0.9% respectively this month. Annually, Yorkshire leads the way with a huge 5.4% year-on-year gain in the latest result.
This compares with the South East, where property prices increased by just 0.3% over the past year. The region is likely being held back in part by affordability constraints of buyers, being one of the most expensive places to own a property.
The report adds: “Rental yields are undeniably a key driver of regional growth disparity, directing investment away from arguably over valued locations predominantly in the South towards the northern regions.
“Overall, the vital signs of the UK property sales market indicate a positive state of health, due mainly to continued demand in the North.”
Places to invest in North West property
The biggest major city in the North West is Manchester, home to an array of property investment opportunities depending on your short and long-term goals. As a city, Manchester stands out as offering not only high yields, but some of the strongest price growth prospects in the country.
With high tenant demand supporting the rental market, and huge levels of regeneration in and around the city centre, Manchester offers North West property investors an affordable yet profitable option in a thriving and increasingly important UK city. Meanwhile, the popular suburbs around the city such as Altrincham and Didsbury offer a good alternative for investors.
Liverpool is another top-performing North West property investment hotspot. Prices in Liverpool are generally lower than in Manchester, but with exceptionally high tenant demand Liverpool tends to offer higher rental yields on average, making it an excellent prospect for long-term landlords.
The city has already enjoyed extensive regeneration, with the ongoing Liverpool Waters project transforming the city and creating more opportunities for investors. The next game-changing redevelopment project is Wirral Waters, just across the River Mersey.
Stockport is a town within Greater Manchester but with its own identity and prospects separate from the big city, and it’s attracting a growing number of businesses, investors and residents. As a North West property investment destination, the pipeline of upcoming regeneration projects make it a popular option looking for an ‘up-and-coming’ location.
BuyAssociation can help you find your next North West property investment opportunity. Get in touch today for more information.
