The North West Housing Market in Autumn 2025: Resilient Yet Cautious

The housing market in the North West of England is showing signs of resilience as we move into the final quarter of 2025. Despite economic headwinds and looming tax reforms, the region continues to attract buyers and maintain modest price growth. However, caution is creeping in, particularly as speculation around the Autumn Budget intensifies.

Steady Growth Amid Uncertainty

The North West has weathered a turbulent few years, and 2025 has so far brought a sense of stabilisation. House prices in the region rose by 0.3% in August, bringing the average to £299,331, which is 2.2% higher than the same time last year. This growth is supported by easing borrowing costs—the Bank of England cut the base rate to 4% in August, its lowest in over two years—and strong wage growth, which is gradually improving affordability.

However, the housing market is not without its challenges. Inflation remains high, projected to fall to 3.3% by the end of the year, still above the Bank’s 2% target. This has led to speculation about potential tax changes, including a possible levy on homes sold for over £500,000 and the removal of capital gains exemptions on primary residences above £1.5 millionFine & Country.

Buyer Sentiment and Market Activity

While overall activity has stabilised, buyer sentiment is beginning to waver. In July, property transactions reached 95,580, a 4.3% increase year-on-year, and mortgage approvals hit 65,352, the highest since January. Yet, demand is softening. The RICS new buyer demand series for the North West returned a net balance of 21% in August, down sharply from 61% in July, indicating a noticeable dip in interest.

Estate agents are reporting mixed signals from the housing market: 23% have seen fewer new listings, 8% more fall-throughs, and 12% are experiencing all of the above. This suggests that while the housing market remains active, uncertainty is beginning to affect decision-making.

Pricing Realism and Inventory

One of the more telling signs of housing market adjustment is the rise in price reductions. A record 809,000 price cuts have been logged so far in 2025, 7.8% higher than the same period last year. This reflects a growing realism among sellers, especially as the number of homes for sale has increased by 10% compared to 2024.

In the prime market, the average asking price in the North West is £718,001, unchanged from last year. Notably, Wigan and Blackburn are currently the best performing areas, showing stronger buyer engagement and price stability.

Looking Ahead

With the Autumn Budget scheduled for 26 November 2025, many buyers and sellers are adopting a wait-and-see approach. The average time to secure a buyer is now 63 days, slightly longer than last year but down from 77 days at the start of 2025. For those hoping to move before Christmas, the window is narrowing.

In summary, the North West housing market remains robust but cautious. Modest price growth, increased inventory, and shifting buyer sentiment define the current landscape. As policy changes loom, adaptability and realism will be key for both buyers and sellers navigating the months ahead.