Sheffield revealed as UK house price growth hotspot

Sheffield has been named as a house price growth hotspot, with new data from property investment specialists UOWN predicting significant growth over the next five years.

The South Yorkshire city is expected to see some of the biggest rises in asking prices across Great Britain, with a projected 28.2% increase by January 2030, according to research using ONS, Zoopla, and Rightmove data.

London and the South have traditionally set the pace for the property market, but new data from UOWN’s 2025 UK Property Investment Guide predicts house prices in Yorkshire and The Humber will increase by 5% in 2025 and by nearly 30% over the next five years.

“High rates have had an oversized impact on the South in 2024 and this trend will continue in the coming years, driving homeowners and investors from more traditional hotspots to new areas”, says UOWN’s Founder and Managing Director, Haaris Ahmed. “Some areas of the UK - including Sheffield - have seen remarkable house price growth this year, as buyers perhaps seek out more affordable areas where house prices, despite increases, are still coming in under the national average.”

Property in the Steel City is very affordable and central areas, in particular, will appeal to young professionals and students (S1, S2 and S3). A well-located one-bed flat in good condition can be purchased for around £110,000, and a two-bed flat for £140,000.

A vibrant and rapidly growing city, Sheffield offers impressive rental yields of approximately 7%. Ongoing public and private investments have only enhanced its desirability, making it an increasingly attractive prospect.

With excellent transport links to major cities like Leeds and Manchester, and London just under two hours away by train, Sheffield combines strong returns with outstanding connectivity.

The new report highlights key factors contributing to the region’s housing price surge: falling interest rates, stamp duty reforms, and sustained increases in real wages, which have collectively improved housing affordability.

One significant change involves stamp duty reforms, which will impact a much larger number of transactions. According to the 2025 UK Property Investment Guide, 83% of transactions are expected to incur stamp duty from April 2025, compared to just 49% under the current thresholds. This shift could significantly affect buying decisions.

With the UK housing market showing signs of recovery and stamp duty thresholds set to revert to their original levels on 1 April 2025, buyers and investors will be eager to know where the best opportunities lie for the year ahead.

For more information on the up-and-coming property hotspots, and what’s driving the market, download the full 2025 UOWN Property Investment Guide: https://www.uown.co/guides/uk-property-investment-guide