Affordable Areas Outperform in House Price Growth

Rightmove’s latest data reveals that in 2025, lower-priced parts of the UK recorded the most significant rises in property asking prices. Their analysis, which covered millions of property listings, enquiries, and transactions, shows that areas with cheaper homes consistently outperformed higher-value markets throughout the year.

Among the 50 local areas with the fastest growth in asking prices, only seven had average prices above the national benchmark of £368,031. The typical asking price across these top 50 areas was £270,711, approximately 26% or nearly £100,000 below the national average.

Increased Buyer Demand in Affordable Markets

Colleen Babcock, Rightmove’s property expert, explained the dynamic behind this trend: “There is typically a larger pool of buyers who are looking to move within more affordable price brackets. Therefore, locations with more homes that fall under the average asking price can see more demand from buyers, and that underpins house price growth in those areas.”

Despite these pockets of growth, the national picture showed a slight decline, with asking prices ending 2025 down 0.6% compared to the end of 2024.

Top Performing Locations and Regional Highlights

The area with the highest price increase was Hawick in Roxburghshire, where average asking prices rose by 18% to £148,633. Durham followed with a 15% rise to £251,339, and Stannington in Sheffield experienced a 12% uplift, reaching £264,078.

Scotland featured prominently, accounting for 12 of the top 50 locations, while the North West and Yorkshire and the Humber each contributed eight. Notably, London did not appear in the list despite having the highest average asking price in Great Britain at £679,782.

Commuting Time Influences Buyer Preferences

The data also indicates a preference among buyers for neighbourhoods that offer access to employment without the premium of city-centre prices. Among the strongest house price performers are districts on the outskirts of Sheffield, Liverpool, Newcastle, Hull, and Glasgow.

As many employers increase expectations for office attendance, buyers appear to be balancing commuting times against affordability. Rightmove also notes that many of the fastest-rising areas are close to universities or large NHS trusts, which may contribute to their appeal.

Implications for Landlords and Agents

Mary-Lou Press, president of NAEA Propertymark, commented: “Buyer demand continues to be strongest in areas where homes remain comparatively affordable, particularly in locations that offer good transport links, access to employment, and proximity to key services such as schools, universities, and hospitals.”

She added, “While national average asking prices have softened slightly, the growth seen in lower-priced markets highlights how stretched affordability remains for many buyers. As a result, purchasers are adjusting their expectations on location and prioritising value for money, which is driving increased competition and price growth in these areas.”

For landlords and letting agents, this suggests that properties in more affordable regions may see heightened demand, potentially leading to stronger rental competition and opportunities to optimise rental income. Understanding local market dynamics and buyer priorities, such as commuting convenience and access to key services, will be crucial for effective property management and investment decisions.