Buying or selling a house or flat? What does 2025 hold for the housing market in Yorkshire?
If you’ve been keeping tabs on the housing market in expectation of purchasing your first property, or climbing further up the ladder, you’ll know that house prices have been a hot topic over the past few years through the Covid-induced price surge to the sting of sky-high mortgages courtesy of that 2022 mini-Budget.
With affordability still a major hurdle for most prospective homebuyers, and a shake-up of property taxes from the new Labour government, what can we expect from house prices in 2025 for Yorkshire and beyond?
We spoke to online property valuers Yopa to get their take on the numbers, predictions, and trends shaping the region’s property market this year. Here’s what they said:
What’s happening nationally?
The UK housing market has been through a rollercoaster ride over the past few years. After the sharp rises in house prices during the pandemic, growth slowed in 2023 and 2024 due to higher mortgage rates and inflationary pressures. The average UK house price now stands at approximately £285,000, a modest increase of around 1% on average over the last year, according to data from Rightmove and Zoopla.
Looking ahead, industry experts are cautiously optimistic. Rightmove predicts a 4% increase in UK house prices in 2025, driven by stabilising mortgage rates, a resilient economy, and a continued shortage of housing stock. Meanwhile, Zoopla is slightly more conservative, forecasting a 2.5% rise, with regions outside London, including the North of England, leading the charge.
Yorkshire’s unique position
Yorkshire has long been a favourite for property hunters. Its mix of prospering cities like Leeds and Sheffield, bustling towns such as Harrogate, and idyllic countryside settings like the Yorkshire Dales, gives it broad appeal to a range of house hunters.
In 2024, Yorkshire’s housing market remained relatively stable compared to other regions. While prices in London and the South East faltered, Yorkshire saw a modest 1.5% growth, with the average property price locally reaching £237,464, according to Rightmove.
The region’s affordability continues to be its biggest draw. Even in affluent areas like Harrogate (frequently voted one of the best places to live in the UK) or York itself, you’ll often get far more bang for your buck compared to equivalent properties in the south. Semi-detached homes, the most popular type of property in the region, sold for an average of £223,544 last year, while detached homes fetched £388,502.
What to expect in 2025
So, what’s in store for Yorkshire in 2025? The consensus is that the county is poised for growth, and here’s why:
1. Mortgage rates are easing
Over the past year, high mortgage rates have put the brakes on the housing market. But with the Bank of England expected to cut rates later this year, mortgage rates are predicted to fall to around 4% by December 2025. Lower rates will improve affordability for buyers, which could increase demand and push up prices.
2. Stamp duty changes
The government’s decision to adjust stamp duty thresholds from April 2025 is another key factor which could have an impact on house prices. Buyers may rush to complete transactions before the changes take effect, leading to a temporary surge in demand in the early months of this year.
3. Yorkshire’s affordability advantage
With house prices in many parts of the South remaining prohibitively expensive, buyers are increasingly turning their attention to more affordable regions. Yorkshire’s relative value for money is expected to attract both first-time buyers and investors, further boosting demand.
Key trends to watch
Rural renaissance
The pandemic-era trend of moving to rural or semi-rural areas shows no signs of slowing. Market towns like Skipton, Beverley, and Hebden Bridge are seeing increased interest from buyers seeking a quieter, greener lifestyle. Expect price rises in these areas to outpace regional averages.
City living comeback
While rural properties are having their moment, Yorkshire’s cities are also back in the spotlight. Leeds, in particular, is thriving, with major investment in infrastructure and a growing tech scene. Flats and terraced houses in urban areas are likely to see renewed demand, particularly among younger and first-time buyers.
Eco-friendly homes
Sustainability is becoming a key consideration for buyers. Homes with high energy efficiency ratings or eco-friendly features, such as solar panels and heat pumps, are increasingly commanding a premium. Estate Agents Savills recently analysed EPC records which showed an average difference of 17% in the value of property between a band B and band F and 15% between one in band D and band G.
Advice for buyers and sellers
If you’re buying
2025 could be a good year to take the plunge, especially if mortgage rates continue to drop. Focus on properties in up-and-coming areas or those with strong eco-credentials to ensure long-term value.
If you’re selling
It’s a seller’s market in Yorkshire, particularly for homes in sought-after locations. Of course affordability remains an issue as mortgage rates are slow to return to pre-2022 levels. Make sure you have valued your property correctly and avoid an overambitious asking price if you are keen for a swift sale. Present your property at its best – consider staging and minor upgrades to make it really stand out.
While predicting the housing market is never an exact science, the outlook for Yorkshire in 2025 is promising. With its unique blend of charm, affordability, and opportunity, the county is well-placed to attract buyers and sustain steady price growth. So, whether you’re buying your first property, upgrading to a family home, or simply curious about the market, Yorkshire is undoubtedly a region to watch this year.
All investments carry a risk and the value can go down as well as up. As with all investments, you should seek professional advice, which is specific to your personal circumstances and appetite for investment risk before making any financial investment.