New research from property website Zoopla has unveiled the UK's property value hotspots for 2025, revealing a stark geographical divide in housing market performance. The comprehensive analysis indicates that approximately half of the nation's 30 million homes registered an increase in value during the year, while significant portions experienced declines or remained stable.
Regional Disparities in Home Value Changes
Zoopla's data demonstrates "clear cut" differences across the United Kingdom, with northern regions, Scotland, and Northern Ireland significantly outperforming southern England. The research found that more than 70% of homeowners in northern English regions, alongside those in Scotland and Northern Ireland, recorded value gains for their properties.
Northern Ireland Leads with Remarkable Performance
Northern Ireland emerged as the standout performer, with an astonishing 94% of homes estimated to have experienced price increases during 2025. The average gain in Northern Ireland reached £14,200, demonstrating robust market conditions despite broader economic challenges.
Scotland followed closely with 73% of homes increasing in value, averaging £10,400 in gains. The North West region of England showed similarly strong performance, with 72% of homes seeing valuations increase by an average of £9,700.
Southern England Faces Market Challenges
In contrast, southern England presented a different picture entirely. Zoopla's analysis revealed that six in ten homes that fell in value over the year were located in southern regions. This reflects ongoing affordability challenges stemming from higher house prices and increased choice for buyers in these markets.
Richard Donnell, executive director at Zoopla, commented on these findings: "Our analysis shows how varied changes in home values are across the country and within local areas. The general trend is that most home values continue to increase steadily upwards, especially away from southern England."
Detailed Breakdown of Regional Performance
The research provides specific data on regional performance across the UK:
- Northern Ireland: 94% of homes increased, average gain £14,200
- Scotland: 73% increased, average gain £10,400
- North West: 72% increased, average gain £9,700
- North East: 67% increased, average gain £6,600
- Wales: 60% increased, average gain £8,000
- Yorkshire and the Humber: 58% increased, average gain £7,800
- West Midlands: 55% increased, average gain £8,600
- East Midlands: 43% increased, average gain £7,400
- East of England: 41% increased, average gain £11,000
- London: 35% increased, average gain £17,400
- South West: 33% increased, average gain £10,400
- South East: 32% increased, average gain £11,800
Local Authority Hotspots Across Britain
Beyond regional trends, Zoopla identified specific local authority areas that emerged as property value hotspots:
- Renfrewshire in Scotland led with 95% of homes increasing in value, averaging £12,500 gains
- Chorley in the North West followed with 88% of homes increasing, averaging £11,500
- Wrexham in Wales showed 79% increases with average gains of £10,400
- Northumberland in the North East registered 78% increases averaging £8,600
- Calderdale in Yorkshire and the Humber saw 77% increases averaging £10,000
- Dudley in the West Midlands recorded 77% increases averaging £8,500
- Castle Point in the East of England showed 67% increases averaging £10,500
- High Peak in the East Midlands registered 67% increases averaging £8,800
- Gloucester in the South West saw 62% increases averaging £8,300
- Waltham Forest in London recorded 59% increases with substantial average gains of £26,600
- Test Valley in the South East showed 58% increases averaging £12,300
Property Type Performance and Market Dynamics
The research also examined how different property types performed throughout 2025. Terraced and semi-detached homes proved most resilient to market pressures, with over half (56%) registering consistent value increases. Conversely, flats were most likely to experience value losses of 1% or more, with exactly 50% seeing values decline during the year.
Donnell further explained the market dynamics: "Many homes are registering broadly static or lower values as the market continues to adjust to higher mortgage rates and more homes for sale which is boosting choice for buyers. This is particularly prevalent in southern England."
Longer-Term Trends and Expert Analysis
Aneisha Beveridge, head of research at Hamptons, provided additional context: "There are some longer-term forces at play here. More affordable parts of the Midlands and the North have been outperforming the rest of the country, not just in 2025, but for most of the last decade, supported by lower price points and therefore stronger affordability."
Beveridge continued: "By contrast, households in London and the South have felt the impact of higher interest rates most acutely since 2022, which has held back price growth, narrowing the historic North-South divide."
Overall Market Picture for 2025
Zoopla's comprehensive analysis reveals that approximately 15.2 million homes registered an increase in value of 1% or more during 2025, with average gains reaching £9,900. Some 3.1 million homeowners saw particularly substantial increases of £20,000 or more in their property values.
Meanwhile, around 9.1 million homes lost at least 1% of their value last year, with average losses amounting to £10,800. A further 5.6 million homes maintained their value within a narrow band of plus or minus 1%, indicating relative stability despite market fluctuations.
Donnell concluded with advice for sellers: "The choppier and complex market conditions in the south makes it critical for sellers to be realistic on pricing in 2026." Zoopla automatically values UK homes every month, providing ongoing insights into market trends and property performance across the nation.
