Leeds revealed as UK house price growth hotspot

Leeds has been named as a house price growth hotspot, with new data from property investment specialists UOWN predicting significant growth over the next five years.

The West Yorkshire city is expected to see some of the biggest rises in asking prices across Great Britain, with a projected 28.2% increase by January 2030, according to research using ONS, Zoopla, and Rightmove data.

London and the South have traditionally set the pace for the property market, but new data from UOWN’s 2025 UK Property Investment Guide predicts house prices in Yorkshire and The Humber will increase by 5% in 2025.

As a result, the bustling city in the north of England is attracting property investors from across the country as house prices are anticipated to soar.

“High rates have had an oversized impact on the South in 2024 and this trend will continue in the coming years, driving homeowners and investors from more traditional hotspots to new areas”, says UOWN’s Founder and Managing Director, Haaris Ahmed. “Some areas of the UK - including Leeds - have seen remarkable house price growth this year, as buyers perhaps seek out more affordable areas where house prices, despite increases, are still coming in under the national average.”

With its dynamic blend of modern developments and industrial heritage, plus stylish bars, restaurants, and a thriving cultural scene, Leeds is truly a city on the rise.

Property in the city remains relatively affordable, with an average price of £270,000 and plenty of affordable options for investors. With house prices projected to rise by 28.2% over the next five years - outpacing London’s expected 17% growth - the West Yorkshire city presents a compelling opportunity for both rental income and capital appreciation.

The city has emerged as somewhat of an economic powerhouse and a top choice for investors. Contributing £69.4 billion to the UK economy, it is home to major employers like Sky Bet, Channel 4, Asda, and NHS Digital. With a population exceeding 800,000 and growing faster than the national average, demand for quality rental housing continues to rise.

High-yield areas like the city centre and Headingley offer rental returns of 6-7%, making it a strong performer in the buy-to-let market.

The new report from UOWN highlights key factors contributing to the region’s housing price surge: falling interest rates, stamp duty reforms, and sustained increases in real wages, which have collectively improved housing affordability.

One significant change involves stamp duty reforms, which will impact a much larger number of transactions. According to the 2025 UK Property Investment Guide, 83% of transactions are expected to incur stamp duty from April 2025, compared to just 49% under the current thresholds. This shift could significantly affect buying decisions.

With the UK housing market showing signs of recovery and stamp duty thresholds set to revert to their original levels on 1 April 2025, buyers and investors will be eager to know where the best opportunities lie for the year ahead.

For more information on the up-and-coming property hotspots, and what’s driving the market, download the full 2025 UOWN Property Investment Guide: https://www.uown.co/guides/uk-property-investment-guide