Budding Real Estate Investors Should Eye Wigan, Blackburn, and Falkirk for Potential Property Price Upsurges
In a surprising turn of events, the housing market in more affordable regions across Britain is experiencing a surge in growth, with the West Midlands and Scotland leading the pack. According to recent data, property prices in these regions have seen an average increase of 2.2% to 3% in 2025, significantly outpacing the less than 1% growth in southern England [1][4].
The affordability of these regions is a key factor driving this growth. With lower average property values compared to southern England and London, these areas are more accessible to a broader range of buyers, including first-time buyers and investors [1]. This increased demand is pushing prices upwards.
Another significant factor is the strength of the regional economic and rental markets. Rising rents and high competition among renters are making buy-to-let investments attractive, further increasing demand for properties and supporting price growth [2].
Investors are also attracted to these regions due to expectations of higher capital appreciation compared to slower-growing, higher-value southern markets. Property consultancies forecast stronger price growth in areas like the West Midlands and Scotland over the next several years, with some areas expected to see growth of 5% or more [1][2][3].
A lack of supply in these regions, combined with competitive mortgage rates, is also sustaining upward pressure on prices. Reduced supply, especially in affordable markets, where demand outstrips availability, is encouraging price rises [2].
Changes in stamp duty and other market incentives have also shifted buyer focus away from expensive southern markets towards more affordable northern and midland regions, further fueling growth in these areas [3].
However, in more expensive locations like London and the South East of England, the number of homes for sale is 16 to 19% higher than a year ago, indicating a slower market [1].
In contrast, the housing market in these more affordable regions is showing signs of vibrancy. An element of 'scarcity' in the market is pushing up house prices faster, according to Zoopla [2]. The number of buyers and sellers agreeing home sales has increased by 6% compared to a year ago [2].
Richard Donnell, executive director at Zoopla, predicts the market will see 5% more sales in 2025 but house price inflation will remain between 1 and 2% [2]. This suggests a balanced market, with steady growth but without the overheating seen in some parts of the country.
In conclusion, the factors driving faster house price growth in the West Midlands and Scotland are primarily their greater affordability, strong rental markets, investor interest in capital gains, supply constraints, and favourable mortgage conditions, all of which contrast with slower growth or even price falls in higher-value southern markets [1][2][3][4].
[1] Zoopla (2025). [House Price Index Report - Q1 2025](https://www.zoopla.co.uk/house-prices/zoopla-index/) [2] Zoopla (2025). [UK Housing Market Report - Q1 2025](https://www.zoopla.co.uk/house-prices/zoopla-uk-housing-market-report/) [3] Savills (2025). [UK Housing Market Forecast - 2025](https://www.savills.com/en-gb/research-and-consultancy/uk-housing-market-forecast-2025) [4] Halifax (2025). [House Price Index Report - May 2025](https://www.halifax.co.uk/mortgages/lending/property-prices/house-price-index/)
- Investors are finding attractive opportunities for buying property and securing mortgages in more affordable regions like the West Midlands and Scotland due to expectations of higher capital appreciation compared to slower-growing southern markets.
- The personal-finance aspects, such as competitive mortgage rates and the strength of the rental markets, are making buy-to-let investments in these regions increasingly attractive, contributing to the surge in property prices.
- The increased demand from first-time buyers, investors, and those seeking real-estate investments in regions such as the West Midlands and Scotland is driving up property prices, creating a vibrant and balanced housing market compared to the slower growth or even price falls in higher-value southern markets.
