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NEWS & INSIGHTS

Where are the Best Housing Prices in the UK in 2024?

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Housing prices in the UK vary dramatically across different regions, presenting unique opportunities for investors and homebuyers in 2024. This analysis cuts through the noise to reveal where the true value lies in today’s market, focusing on areas that offer the best combination of affordability and potential for growth.

Understanding regional price differences is important when considering property investment. The purchase price not only affects your mortgage options but also impacts your potential return on investment. This guide will help you navigate the UK’s diverse property landscape, highlighting the most promising locations for your next property purchase.

Current UK Housing Market Overview 

The UK property market in 2024 is not just determined by location and timing but also by other factors, including:

  • Property type (detached, semi-detached, terraced)
  • Size and square footage
  • Local market conditions
  • Economic factors

According to the UK HM Land Registry House Price Index, the average UK house price in September 2023 was £291,000. This authoritative index is jointly produced by HM Land Registry, Registers of Scotland, Land and Property Services Northern Ireland, and the Office for National Statistics (ONS). 

2024 Property Predictions

While precise predictions are challenging, especially with the upcoming General Election, recent trends offer insights into potential market movements. According to Savills, early 2024 has shown promising developments, with UK house prices rising by 1.1% in the first quarter and annual house price growth reaching 1.6% by the end of March. Monthly mortgage approvals have also exceeded 60,000 for the first time since September 2022, indicating increased market activity.

Several factors are influencing these positive trends. The easing of mortgage rates and a competitive lending environment have impacted this, with fixed-rate mortgages now benchmarked around 4.5-5%. Improved economic growth has boosted buyer confidence.

Expert forecasts suggest that house prices are expected to continue growing positively in 2024, though the rise is anticipated to be less than 2.5%. This cautious optimism contrasts with earlier predictions from November 2023, which suggested a 3% average price drop for 2024. The shift in outlook can be attributed to the improving mortgage landscape and increased market activity.

While the property market shows signs of stabilising, regional variations continue. Potential buyers and investors should consider local market conditions and their financial situations when purchasing their first property or expanding their portfolio in 2024.

Which Region in the UK Has the Cheapest Houses in 2024?

House prices will continue to fluctuate month on month, as they always have. For example, according to the Zoopla UK house price index, the average house price inflation from February 2024 was £263,900 to £264,900 in May 2024. 

Where the property is located in the UK can have a huge effect on its price. This is especially true for the North and the South. You can typically expect property in the North of the UK to have a lower selling price than the South.

RegionAverage Price August 2023Annual Change % Since August 2022Monthly Change % Since August 2023
North East£163,0001.6-2
Yorkshire and the Humber£210,0000-2.4
North West£218,0000.60.5
East Midlands£251,0000.4-0.6
West Midlands£254,0000.5-0.2
South West£329,000-1.6-0.1
East of England£353,000-1.4-0.4
South East£392,000-1.4-0.6
London£537,000-1.1-0.3

Source: Rightmove

North East Property Investments are significantly more affordable than most other UK regions. The lower entry costs mean investors can acquire properties at a fraction of what you would pay in more expensive areas like London or the South East. The North East’s ongoing urban regeneration projects and new developments are creating opportunities for investors to capitalise on areas with a lot of growth potential. 

Top 10 Cheapest Places to Purchase Property in the UK

In regions with the most affordable property prices, buyers can secure properties at a fraction of the cost compared to other parts of the UK. This affordability allows for the purchase of larger homes with more features, enhancing the overall value.

From this house price data, investing in these areas can lead to greater returns if property values rise over time. Lower purchase prices can result in higher rental yields, making these investments particularly attractive for those looking to maximise their income potential.

LocationAreaPostcodeLowest Average Price 
Yorkshire and the HumberBradfordBD1£69,939
North EastMiddlesbroughTS1£71,998
Yorkshire and the HumberGrimsbyDN31£72,574
North EastShildonDL4£72,604
North EastMiddlesbroughTS3£75,149
North EastSunderlandSR1£81,610
North EastFerryhillDL17£82,092
North WestLiverpoolL2£85,968
North EastPeterleeSR8£86,188
North WestBurnleyBB11£90,501

Data source: Dataloft by PriceHubble (Dec 2022- Nov 2023)

Bradford, West Yorkshire

Bradford is the cheapest city to purchase a property. Homes can be bought for less than £70,000 in some areas of the BD1 postcode. It’s a popular destination for first-time buyers, renters, and investors and mostly consists of period homes from the Victorian era.

Bradford also offers excellent connection links to the city of Leeds, either 20-30 minutes via train or car, which is perfect for buyers who can’t afford the much steeper prices that purchasing in Leeds comes with. 

Middlesbrough, North Yorkshire

2 and 5 on the list of the cheapest places in Middlesbrough. The TS1 postcode offers property prices from £71,998, and in the TS3 area, prices start from around £75,143. Middlesbrough offers a much more affordable option for anyone employed in the northeast regions of Newcastle and Durham to step onto the property ladder. 

Middlesbrough has many job opportunities and is within easy reach of Durham Tees Valley’s local airport, which is seeing huge investment and expansion. It is also home to a university, which could make it an ideal place to invest in rental properties.

Grimsby, North East Lincolnshire

The average house price is £72,574. Grimsby is a port town with charm, a rich heritage, and a fishing history. It’s a place where first-time buyers are looking to purchase a more affordable home at a relaxed pace, and it is ideal for home workers.

Shildon, County Durham,

Shildon, based in County Durham, offers great property prices. It is a quiet town that offers excellent links to the centre of Durham without the hefty price tag.

The town is close to other cities such as Darlington, Newcastle, Sunderland and Middlesbrough, which makes it a perfect place for commuters while offering a quieter, calmer lifestyle than the hustle and bustle of the cities. 

Sunderland, Tyne and Wear

Sunderland sits along the coastline of the North East. Property in the SR1 postcode is on the market for around £81,610. It offers excellent links to Newcastle by metro or car. It’s the perfect location for people looking for nature and outdoor activities. 

Ferryhill, County Durham

The average house price in Ferryhill is just over £82,000, making it appealing for investors and buyers looking for a more affordable option. With proximity to Durham and Darlington and easy access to the A1, it’s ideally located for those looking for good community links and country views.

Liverpool, Merseyside

The most affordable postcode in Liverpool is LS2, with prices starting from just over £85,000. Liverpool is known for its cultural diversity and has something to offer everyone. Although the property market in Liverpool is rising and becoming more popular, there’s still an excellent opportunity to snap up an affordable property.

Peterlee, County Durham

Peterlee in Country Durham is last on our list of affordable places to purchase a property, whether for investment or stepping onto the property ladder, with prices starting from just over £86,000. It also offers beautiful countryside and abundant woodland areas perfect for walking. The connection links to the local cities of Durham, Sunderland and Newcastle are also excellent.

Areas to Invest in UK Property with Yield Investing

While the best place for property investment in the UK can vary depending on the purchaser’s goals, the North East offers the best purchase price and gives you more for your money. Lower purchase prices can provide excellent opportunities to generate solid and higher returns on the investment. 

Thanks to rising house prices and economic growth, the UK offers some attractive options for purchasing a property for personal use or investment, and there doesn’t seem to be any signs of slowing down. At Yield Investing, our investment efforts are focused in the Northeast, with many of our available properties within the County Durham, Hartlepool, and Middlesbrough areas. 

We can give you access to an expert team with the knowledge to help you identify the best places to start your investment journey and purchase social housing or supported living properties. You can also be sure that your investments will provide safe and secure returns. Contact us now to get started.

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