We’re four months into 2025 and the UK housing market is already telling an interesting story—especially if you’re a property investor looking for smart, strategic moves this year. If you’re active in the North like us or just watching from the sidelines, here’s a grounded update on what actually happened in Q1 2025—and what it could mean moving forward.

 

Growth Slowing, But Market Activity Is Picking Up

To kick things off: UK house price inflation slowed to +1.8% in February, down slightly from 1.9% in January. That sounds quiet, but it’s still growth—especially compared to this time last year, when we were technically in negative territory.

Meanwhile, sales agreed are up 5% year-on-year, and buyer demand rose 10% nationally. So while prices aren’t booming, people are definitely back in the market and deals are happening.

Oh, and the average UK house price? Currently sitting at £267,500.

What’s behind the slowdown? In short: more supply. There are now 11% more homes for sale compared to Q1 2024, which gives buyers more options and takes the heat off pricing pressure.

 

Spotlight on Our Investment Cities

At Pillar-X, we don’t invest based on hype—we follow fundamentals. And Q1 has backed up what we’ve been seeing on the ground in our key markets:

📍 Liverpool

  • Price growth: +3.0% year-on-year
  • Average price: £162,000
  • Still one of the best-performing cities in the North West

Liverpool remains a solid pick for long-term capital growth and strong rental yields. Tenant demand is healthy, and investors continue to be drawn to its affordability and regeneration buzz.

 

📍 Bradford

  • Price growth: +3.6% YoY
  • Local affordability and renewed investor interest are fuelling this rise

It’s one of those cities flying under the radar—but Bradford’s growth is now outpacing the national average. As prices in the South plateau, northern towns like Bradford are looking increasingly attractive for BTL and flips.

 

📍 Glasgow

  • Price growth: +1.7% YoY
  • Still ahead of many southern markets

While not growing as fast as Bradford or Liverpool, Glasgow continues to be a reliable performer with strong rental demand—particularly from professionals, students, and families. If you know the pockets, there’s value to be found.

 

The Stamp Duty Shift: What Changed in Q1

 April 2025 brought in higher stamp duty thresholds, and the impact started bubbling up at the end of Q1:

  • 80% of homeowners and 40% of first-time buyers will now pay stamp duty (up from 50% and 20%)
  • First-time buyer demand was pulled forward into late 2024, especially in London
  • Now, we’re seeing a dip in demand in the capital—down 3% year-on-year

That post-deadline lull hit the South hard, but hasn’t rocked northern cities the same way. Homes under £300k—like most in Liverpool, Glasgow, and Bradford—are still attractive to buyers, especially FTBs who’ve been priced out of London.

 

What’s the Outlook for Q2 and Beyond?

Looking ahead, here’s what we’re keeping an eye on:

  • Price growth is expected to slow further, especially in over-supplied markets
  • Mortgage rates are steady around 4.4%, so affordability isn’t getting worse—but it’s not improving either
  • More listings mean more competition for sellers, which creates room for negotiation

For investors, this means two things:

  1. It’s a good time to buy—if you’re strategic. You can be more selective and negotiate well, especially if you’re buying in a market where demand is still strong.
  2. If you’re selling or refinancing, pricing matters more than ever. The right valuation (guided by a local expert) will make or break your exit.