Plymouth has emerged as the UK's undisputed property hotspot for 2025, recording the nation's most dramatic surge in house prices, according to new data. The Devon city saw average property values leap by an impressive 12.6% over the year, significantly outpacing national growth and drawing buyers with major investment in its amenities and infrastructure.
Regional Hotspots Outperform as London Stalls
The figures, released by Lloyds Banking Group, reveal a sharply localised housing landscape. While the UK average saw a modest year-on-year increase of 3.7%, several regional cities experienced double-digit growth. Following Plymouth, Stafford and Wigan also posted significant price rises, highlighting a trend of buyer interest shifting towards areas offering value and lifestyle appeal.
In stark contrast, London was the only UK region where prices effectively stalled, with a marginal dip of 0.1% leaving the average property value at £574,514. Northern Ireland led regional growth at 5.8%, followed by Scotland and the north-west of England.
Investment and Lifestyle Fuel Plymouth's Appeal
Property experts point to sustained investment as a key driver behind Plymouth's boom. "Plymouth has benefited from substantial infrastructural investments like Royal William Yard, which created a number of new homes," said Nigel Bishop of buying agency Recoco Property Search. He added that the city's improved retail, sporting, and culinary amenities have made it attractive to a broad range of house hunters, creating a more competitive market.
This analysis is supported by research from Confused.com, which ranked Plymouth third in the UK for community and highest for overall life satisfaction, with residents scoring their happiness at 7.8 out of 10.
Another notable entrant to the top growth areas was Hull, where prices increased by 6.5%. The city's recent designation as a National Geographic "best of the world" destination for 2026 has likely bolstered its profile.
Prime London Market Shows Tentative Signs of Stabilisation
Separate research from Savills indicates that the prime central London market, which has struggled since changes to the non-dom tax regime, may be finding a floor. Price falls at the top end of the market have slowed since the budget, with the final quarter of 2025 seeing a 0.9% decline in prime central London—an improvement on the 1.8% drop in the previous quarter.
Frances McDonald, director of research at Savills, noted a modest improvement in confidence, particularly in the £2m-plus market. "Agents, particularly in outer prime London neighbourhoods, are reporting a pickup in viewings and exchanges," she said. However, she cautioned that demand in the most expensive central postcodes remains thin, with the market still absorbing the impact of higher stamp duty surcharges and inheritance tax changes for non-doms.
Despite the slowdown in quarterly declines, prices in London's most traditional prime neighbourhoods have lost a quarter of their value since their 2014 peak.
Amanda Bryden, head of mortgages at Lloyds, summarised the national picture: "We’ve seen significant change in property values, with some areas rising sharply while others have cooled." This data underscores the increasingly fragmented nature of the UK's post-pandemic property market, where local factors are trumping broader national trends.
