The North West property market continues to demonstrate fundamental strength heading into 2026, despite broader national uncertainty. For investors with deployment capital, understanding regional performance rather than national headlines can help you identify  where opportunities exist.

This market update examines house price movements, sales activity, rental dynamics, infrastructure investment, and strategic positioning for 2026 across the North West region.

—

 House Price Performance: North West Leads National Growth

The North West maintains its position as England’s strongest-performing region for property price appreciation.

 Regional Overview

Average house prices in the North West stand at £247,000, representing 3% annual growth outpacing the national average of 2.6% and marking the region as a consistent outperformer.

More significantly, the North West experienced the most monthly price increase at 1.6% in August 2025, demonstrating sustained momentum rather than temporary appreciation.

The North-South Performance Gap

Manchester remains England’s top-performing city with 3.1% annual price growth, while southern regions struggle to achieve 1% growth. This divergence reflects fundamental affordability dynamics, elevated mortgage rates and living costs have compressed purchasing power in expensive southern markets, while the North West’s lower entry points sustain transaction activity and price growth.

Local Authority Performance

Within the North West, significant variation exists at the local authority level:

Top Performers (12-month growth):

• West Lancashire: +12.0% (£25,620 absolute increase)
• Fylde: +11.2%
• Knowsley: +8.1%

Strategic Locations:

• Salford: Consistent growth with strong fundamentals
•  Oldham: +3.7%
• Wigan: +3.9%

Price appreciation isn’t uniform—Lancashire averages £207,000 while Cheshire commands £311,000. For investors, this spread creates opportunities at multiple capital deployment levels.

—

 Sales Activity & Market Liquidity

Transaction volumes tell a more nuanced story than headline prices.

Sales Agreed Data

Property sales in the North West totaled 85,600 properties over the last 12 months, down 15.5% year-on-year. This decline reflects national patterns—elevated mortgage rates and economic uncertainty have dampened transaction activity across all UK regions.

However, the North West’s transaction volumes remain healthier than southern markets where asking price premiums have deterred buyers entirely.

What This Means for Investors

Lower transaction volumes create specific advantages for experienced investors:

1. Reduced Competition: Fewer active buyers mean less bidding pressure on suitable properties

2. Vendor Realism: Extended marketing periods force more realistic pricing

3. Negotiation Leverage: Motivated sellers prioritise certainty over maximum price

4. Development Opportunities: Properties requiring work face less competition from retail buyers

Most North West transactions occur in the £150K-£200K range (19.7%) and £100K-£150K range (18.3%)—precisely where HMO conversion and value-add BTL strategies operate most effectively.

—

Rental Market Dynamics: Strong Fundamentals Despite Moderation

The rental market has entered a stabilisation phase after years of dramatic growth, but fundamentals remain robust in the North West.

Rental Growth Rates

Average rents in England increased to £1,416 per month, up 5.0% annually. However, this represents the slowest rate of rental growth seen in 4 years, down from peaks of 9%+ in 2023.

The North West specifically shows quarterly rental increases fluctuating around 1.4% with no discernible downward trend, indicating sustained—if moderate—growth rather than contraction.

Supply and Demand Rebalancing

Rental supply has increased by nearly 20% year-on-year as new buy-to-let mortgage lending rose 60% in Q1 2025. This supply expansion, combined with 24% fewer tenant enquiries as migration levels fall and first-time buyer mortgages improve, has moderated rental inflation.

For Landlords, This Means:

– Increased Choice for Tenants: Professional-grade properties still command premium rents

– Quality Differentiation: Well-specified HMOs maintain occupancy while standard stock sits longer

– Yield Stability:  The North West delivers 6.12% average rental yields—second only to Scotland nationally

– Professional Tenant Demand:  Manchester and surrounding areas see 15-20 serious enquiries within hours of listing quality properties

 Regional Rental Performance

The North West achieves rental yields of 8.3% on average, with cities like Manchester, Liverpool, and Preston offering 6-8% yields combined with robust capital growth.

Compare this to London’s 5.8% yields requiring substantially higher capital deployment—the North West’s risk-adjusted returns remain compelling.

—

 About Forth Action Invest

Forth Action Invest provides comprehensive turnkey property development services in Greater Manchester and the wider North West. From acquisition through refurbishment to ongoing management, we deliver professional property solutions for experienced investors.

Our systematic approach to market analysis, due diligence, and project execution has enabled us to navigate changing market conditions while maintaining consistent investment performance for our clients.

For investors seeking Greater Manchester property opportunities:

📧 Contact: info@forthactioninvest.co.uk

🌐 Website: forthactioninvest.co.uk  

📍 Operating across Greater Manchester and North West England

—

All investment carries risk. Past performance does not guarantee future results. Independent financial and legal advice recommended before investment decisions.*