Clann’s Guide to UK Property Trends in 2025

The UK property market in 2025 is evolving rapidly; shaped by shifting demographics, major regeneration projects, and growing interest in regional cities. Understanding where the smart money is heading has never been more important. While London remains a cornerstone of the market, cities such as Manchester and Liverpool are fast emerging as high-growth opportunities.

At Clann, we combine data-led insight with deep local knowledge to help investors make informed, strategic decisions. This UK property guide explores key trends shaping 2025, from population growth and increasing net worth to the regeneration zones unlocking long-term value.

Population Trends in Key UK Cities

One of the most influential factors shaping the UK property market in 2025 is population growth, particularly in key regional cities. While London continues to attract global attention, cities such as Manchester and Liverpool are experiencing notable demographic expansion, which is driving demand for both rental and owner-occupied housing.

According to the Office for National Statistics, Manchester’s population grew by 9.7% between 2011 and 2021, rising from approximately 503,100 to over 552,000. This upward trend is expected to continue, with Greater Manchester Combined Authority projections suggesting sustained growth into the early 2030s, driven by a young workforce, strong graduate retention, and major regeneration schemes.

Liverpool is also seeing steady population growth, supported by investment in infrastructure and the city’s growing reputation as a cultural and digital hub. As more people are drawn to these regional centres, demand for housing – particularly in well-connected, regenerating neighbourhoods – continues to rise.

For investors, this creates a compelling opportunity: a growing tenant base, solid rental yields, and the potential for capital appreciation as housing supply struggles to keep pace with demand.

By focusing on cities with strong population growth trajectories, investors can position themselves ahead of the curve and benefit from long-term stability and consistent demand.

Property Investment Opportunities with Clann

Property continues to be one of the most reliable routes to long-term, stable investment. At Clann Investments, we curate a portfolio of high-potential developments, chosen for their strong rental performance and location in growth-focused markets.

Each opportunity is carefully vetted to meet our performance standards, giving our clients access to exclusive projects with real earning potential. We make the journey to ownership clear and confident, backed by expert insight into local trends, yields, and market dynamics.

The BeCa (London)

This distinctive part of London is experiencing a sustained period of transformation, as new developments and cultural attractions breathe new life into one of the city’s oldest neighbourhoods. With its rich character and improved connectivity, the area is attracting more visitors and offering residents a vibrant lifestyle close to the heart of a world-class city.

At the centre of this regeneration lies the Ruby Triangle – a major development reshaping Southwark. The BeCa forms part of this 5-acre masterplan, designed as a destination in its own right. Once complete, it will deliver over 1,400 new homes, exclusive resident amenities, a leisure centre, fitness suite, and a variety of restaurants and cafés – all set around a landscaped green oasis and moments from the proposed Bakerloo line extension.

Vivere (Manchester)

Cornbrook, like much of Manchester, has seen substantial urban regeneration in recent years. The introduction of new residential developments, landscaped green spaces, and upgraded community facilities has significantly enhanced its liveability, making it increasingly attractive to residents seeking modern urban living.

The Cornbrook Hub site is located within the Regional Centre, occupying a strategically important gateway position at the south-western entrance to Manchester City Centre. Prominently positioned adjacent to the A56 Bridgewater Way, it provides direct access to both the Pomona Island Strategic Development area, of which the site is a key part, and the Bridgewater Canal. The site also includes Cornbrook Metrolink station, a vital component of Greater Manchester’s public transport network, further reinforcing the area’s appeal and connectivity.

Westminster Point (Liverpool)

Liverpool continues to stand out as a prime location for property investment, driven by strong rental yields, competitive entry prices, and significant ongoing regeneration. Developments like Westminster Park exemplify this potential, offering 200 high-specification contemporary apartments, thoughtfully designed for modern city living.

Westminster Point is another major residential scheme contributing to Liverpool’s transformation. It forms part of the city’s broader £14 billion regeneration strategy and is strategically positioned near landmark projects such as Liverpool Waters and the new Everton Stadium, both key drivers of local growth and long-term value.

Rising Net Worth and Affordability Shifts

As incomes climb and wealth accumulates, the balance between affordability and property potential is shifting, unlocking new opportunities across the UK.

Income Growth vs. House Prices

• In England, average house prices reached £298,000 in 2023, equivalent to 8.6 times the average disposable household income of £35,000.
  
• Notably, home prices have risen twice as fast as household incomes since 2000, emphasising the ongoing wealth effect in the market.
  

Regional Affordability Differences

• London remains the least affordable: the average house costs the equivalent of 14.1 years’ worth of income, and remains out of reach even for the top earners.
  
• By contrast, Northern cities like Manchester and Liverpool offer more attractive affordability ratios, which are driving both owner-occupier and investor interest moving northward.
  

Pay Increases in the North West

• As of April 2024, median gross annual pay in the North West was £30,182, compared with £38,281 in London. While average income remains lower, strong growth in major northern cities has improved purchasing power.
  
• And as more high-paying jobs emerge outside of London – from tech and finance to digital and creative industries – regional affordability is becoming increasingly appealing.
  

What This Means for Investors

• Value migration: Investors now see better entry points outside the capital as affordability improves and renters target these regions.
• Income resilience: Markets with balanced income growth and house price movement are providing favourable yields and greater stability.
• London strategy shift: While capital value remains important, savvy investors are leveraging cash flows growing in regional centres to diversify portfolios.
  

Regeneration and Infrastructure

Across the UK, large-scale regeneration and infrastructure projects are reshaping urban areas, transforming underutilised spaces into vibrant communities. These developments are having a significant impact on the property market, boosting local economies, improving connectivity, and driving long-term demand for housing.

Regeneration typically includes new housing, commercial space, transport links, and public amenities, making previously overlooked areas more attractive to both residents and investors. Infrastructure improvements, such as upgraded rail networks or urban transit systems, increase accessibility and often lead to rising property values in the surrounding zones.

For property investors, regeneration areas offer a strategic advantage. Developments in the early stages often provide access to properties at more competitive prices, with the potential for capital growth as the area matures. Additionally, tenant demand tends to rise as new jobs, retail options, and public spaces become available.

Why Regeneration Projects Matter for Investors

Benefit	Impact on Investment
Catalytic uplift	Infrastructure and regeneration projects stimulate local markets, drive demand, and increase visibility for emerging neighbourhoods.
Higher yields & capital growth	Early investors can benefit from competitive entry points, strong rental yields, and long-term price appreciation.
Tenant appeal	Regenerated areas attract tenants with improved amenities, better transport, and enhanced quality of life.

By identifying areas on the cusp of transformation, investors can take advantage of early momentum, balancing strong short-term returns with reliable long-term growth.

Clann’s Perspective 

As we move through 2025, it’s clear the UK property market is being shaped by powerful, long-term trends – from rising population and shifting wealth patterns to the transformative impact of regeneration and infrastructure investment. These forces are redefining where and how value is created across the country.

For investors, the opportunity lies in understanding the nuance behind these changes, recognising not just where growth is happening, but why. Whether you’re looking to build long-term income, diversify your portfolio, or capitalise on emerging markets, staying informed and ahead of the curve is essential.

At Clann, we combine data-driven insight with on-the-ground knowledge to help investors navigate this evolving landscape with confidence. If you’re looking to identify the best opportunities in 2025 and beyond, we’re here to guide your next move.