Top 5 Locations for House Price Growth in the North West in 2023

The Soaring Demand: Fueled by an Increasing Population

The region’s flourishing property market is a direct reflection of its growing population. Over the past five years, the North West has experienced a 3% increase in population, with this trend expected to continue in the near future. One of the region’s key advantages is its more affordable cost of living compared to the South, particularly when it comes to housing expenses.

Recent data shows that the North West has outperformed many other UK regions in terms of property investment returns, boasting an impressive average house price growth rate of 10%, significantly higher than the national average of 6%. Moreover, the rental yield in the region stands at an impressive 6.2%, surpassing hotspots like London (3.5%) and the South East (3.8%). These compelling statistics not only underscore the North West’s robust market trends but also highlight its potential for delivering superior returns on investment. In our upcoming blog post, we will delve into the specific areas within the North West that have experienced the most significant average increase in house prices throughout 2023.

1.Fylde

7.7% increase

Fylde claims the top spot with an impressive annual house price increase of 7.7%. The average house price currently stands at around £242,290. Fylde boasts a thriving rental market, offering buy-to-let investors an average rental yield of 5-7%. Remarkably, Fylde also ranks as the second-highest area in the UK for house price growth in 2023. We consider Fylde to be somewhat of a hidden gem in the North West with excellent potential for further capital appreciation. Economic developments, including investments in industries like tourism and renewable energy, have contributed to the surge in property prices. Improved infrastructure, such as transportation links and recreational facilities, further elevate the allure of Fylde as a prime location for property investments. With its picturesque coastal setting and high-quality of life, Fylde is undoubtedly a location worth considering for discerning property investors and real estate professionals.

2.West Lancashire

7.3% increase

Second on the list is West Lancashire, a vibrant area in the North West that has witnessed remarkable house price growth in 2023, boasting an impressive increase of 7.3%. With an average property price of £232,920, West Lancashire has emerged as an attractive destination for investors looking to capitalize on its potential. The region holds promising prospects for continued growth in the coming year, making it an enticing opportunity for buy-to-let investors seeking to build equity swiftly. Notably, areas like Skelmersdale, where the average house price is nearly £100k lower than West Lancashire’s average, present an even more lucrative opportunity, with the potential for investors to yield as much as 10% gross returns. By delving into the nuances and intricacies of the local property market, investors can make informed decisions and maximize their investment potential in this thriving region.

3.Rochdale

6.7% increase

Rochdale has emerged as a thriving area for house price growth in the North West. With a significant increase of 6.7% in 2023, it secures the third spot on our list. This presents an exciting opportunity for property investors. The ongoing improvements in infrastructure, including regeneration projects and transportation initiatives, have played a pivotal role in driving the growth of house prices. Additionally, the rising demand to live in the greater Manchester area has led people to explore more affordable options outside the city center, seeking a quieter lifestyle. The interplay between supply and demand, along with attractive features like top-notch schools and recreational facilities, further enhance the appeal of Rochdale as an ideal location for property investment.

4.Knowsley

6% increase 

Knowsley, ranked fourth on the list, is a spacious village and civil parish situated in Merseyside, England, within the Metropolitan Borough of Knowsley. Nestled just 11 miles east of Liverpool city center, it offers convenient accessibility for both work and leisure. Knowsley embraces a delightful blend of urban conveniences and rural charm. Notably, it is home to the renowned Knowsley Safari Park, a major attraction drawing visitors from far and wide to witness its extraordinary wildlife. Moreover, the village boasts a rich historical tapestry, exemplified by the majestic Knowsley Hall.

In terms of growth, Knowsley has experienced a notable 6% increase in average prices in 2023, securing its position as the 18th highest in the UK house price growth index. Its proximity to Liverpool City Center, combined with its unique offerings, makes Knowsley an enticing locale for individuals seeking a harmonious lifestyle. Consequently, this has contributed to the rise in housing prices and the growing interest among property investors.

5.Lancaster

5.6% increase

Lancaster, the last on the list, has experienced a respectable annual growth of 5.6% in 2023. Situated in the picturesque North West region, Lancaster has emerged as a promising location for house price growth in the coming decade. The city prides itself on a vibrant student culture, boasting 12,000 full-time students and 3,000 part-time students, which significantly contributes to its population. To maintain a balance between residential and student housing, Lancaster City Council has recently implemented an Article 4 Direction, restricting further investment in student housing unless already established.

In recent years, Lancaster has witnessed substantial progress, notably with the ‘Canal Quarter’ regeneration scheme. This ambitious project aims to transform a significant area of the city into a thriving hub for arts, culture, and commerce while preserving its unique heritage. The scheme includes plans for new retail spaces, eateries, residential units, and a contemporary arts center, further enhancing the city’s appeal for both students and residents. This ongoing investment in infrastructure and amenities reflects Lancaster’s dedication to growth and its vision for a prosperous and vibrant future.

Forth Action Invest specialises in property sourcing and development across the emerging markets in the North West such as Manchester. Investors are able to get exclusive access to our exciting investment opportunities across Manchester, Merseyside, Cheshire & Lancashire. Browse some of our past projects or See our latest investment opportunities here.