Northern Powerhouse Property Market: Regional Data & Trends | Q2 2025
As UK regional property markets continue to outperform many areas of London, the Northern Powerhouse cities remain central to investor interest. In this Q2 2025 Market Intelligence update, we explore the latest data and trends driving property investment across the Northern Powerhouse region — with a focus on Manchester, Liverpool, Leeds and Sheffield.
Manchester — The Powerhouse Capital
Manchester continues to lead the Northern Powerhouse in both economic growth and property performance. The city’s strong professional workforce, booming tech and media sectors, and expanding financial services industry fuel consistent demand for quality housing.
In Q2 2025, Manchester city centre apartments show year-on-year price growth of 5.8%, with average values now approaching £345,000. Rental yields remain strong, with prime city centre new builds achieving gross yields of 6.5–7% — among the best in the UK.
Neighbourhoods such as Ancoats, New Islington, Castlefield and MediaCityUK continue to attract young professionals and overseas investors. Major developments at Mayfield, Great Jackson Street and St John’s are reshaping the skyline and creating long-term investment opportunities.
Improved Metrolink connections and wider transport investment strengthen Manchester’s appeal, despite the cancellation of HS2 to the city.
Liverpool — Affordable Growth & Strong Yields
Liverpool offers some of the strongest rental yields in the Northern Powerhouse region, with average gross yields of 7–8% in key postcodes.
Property price growth in Liverpool accelerated through late 2024 into Q2 2025, with city centre apartment values now rising at 4.9% year-on-year. Regeneration around the Knowledge Quarter, Baltic Triangle and Liverpool Waters continues to drive investor interest.
The city’s expanding life sciences and creative sectors, alongside traditional maritime industries, support strong rental demand. The new Paddington Village innovation district is also drawing attention from institutional investors.
Liverpool remains one of the UK’s most affordable core cities, offering lower entry points and excellent yield potential for portfolio investors.
Leeds — West Yorkshire’s Rising Market
Leeds is rapidly consolidating its position as one of the strongest Northern Powerhouse growth cities. The city’s professional and financial services workforce continues to expand, supported by thriving digital, legal and creative sectors.
In Q2 2025, Leeds city centre apartments are achieving average price growth of 5.2%, with rental yields typically between 6–7%. The ongoing regeneration of the South Bank district, alongside continued investment in public realm and transport, further boosts appeal.
Connectivity within Yorkshire and to London remains strong via East Coast Mainline services — with further Northern rail upgrades in progress. Developments such as Wellington Place and Whitehall Riverside attract both corporate tenants and investors seeking long-term value.
Sheffield — Emerging Opportunities
Sheffield’s property market is increasingly on the radar for regional investors. Historically undervalued compared to Manchester and Leeds, Sheffield offers strong value growth potential — particularly in the private rented sector.
In Q2 2025, Sheffield city centre apartment values show 4.5% annual growth, with average yields of 6.5–7%. The ongoing Heart of the City regeneration project and university-led demand both contribute to sustained growth.
Sheffield’s affordable price points and strong tenant demand, especially from students and young professionals, make it an attractive addition to many regional portfolios.
Summary for Investors
The Northern Powerhouse region continues to deliver compelling property investment opportunities in Q2 2025. Investors seeking a balance of growth, yield and long-term prospects will find excellent value across Manchester, Liverpool, Leeds and Sheffield.
While London remains a global property capital, the Northern cities offer diversification, affordability and robust rental markets — underpinned by economic growth and city regeneration.
For investors tracking UK regional opportunities, Movehut Intelligence provides regular market data and insights to support well-informed decisions in the Northern Powerhouse and beyond.