Why the Northwest of England Remains a Prime Opportunity for Property Investors in 2025
By Michael Holliday - Managing Director, Residential Estates - 5th June 2025
In 2025, with UK property prices stabilising after years of volatility, many investors are refocusing on high-yield, high-potential regions. One area continues to shine for both short-term and long-term property investment: the Northwest of England. Towns like Warrington, Morecambe, and Preston present a compelling case for value, while Manchester and Liverpool offer urban scale and resilience—albeit with evolving challenges. For landlords and investors seeking to balance yield, affordability, and long-term growth, the Northwest remains firmly on the radar.
Regional Strength Meets Property Potential
The Northwest boasts a combination of economic resilience, strong infrastructure, and ongoing investment in regeneration. The region benefits from proximity to national rail and motorway networks, international airports in Manchester and Liverpool, and a relatively low cost of living compared to the South East. This makes the region attractive for both tenants and landlords alike.
But the real draw for investors is the affordability-to-yield ratio. While London and the South East may promise capital growth, the Northwest delivers superior rental yields and lower entry prices—often a winning formula for buy-to-let investors, especially in the current climate.
Warrington: A Rising Star
Sitting midway between Manchester and Liverpool, Warrington has grown into a logistics, tech, and corporate hub with national significance. It offers excellent transport links, good schools, and an improving town centre, bolstered by regeneration schemes like Time Square and plans for further commercial and residential development.
The average property price in Warrington in 2025 is around £220,000, still below the national average. Yet it offers gross rental yields of 6–7% in long-term lets, and potentially higher for short-term lets aimed at contractors, business travellers, and NHS professionals. As Warrington evolves from industrial satellite to commuter sweet spot, its medium-term prospects remain strong.
Morecambe: Betting on Eden North
Morecambe has recently captured attention from both the media and investors, primarily due to the Eden Project North—a £100 million eco-tourism attraction set to transform the local economy. Scheduled to open in 2026, Eden North is already driving demand for both commercial and residential property in the area.
With average house prices in the region of £160,000 to £180,000, Morecambe is still exceptionally affordable. Its coastal charm, low prices, and rising tourist profile make it ideal for short-term lets like holiday rentals or serviced accommodation. Yields of 8–10% gross are achievable with well-finished properties in desirable seafront or central locations. As tourism grows and infrastructure improves, Morecambe offers strong upside for early movers.
Preston: Infrastructure-Led Growth
Preston is Lancashire’s administrative heart and an emerging investment hotspot, boosted by its university, hospital sector, and its role as a gateway town between the Lake District and Manchester. It’s well-connected via the M6 and West Coast Mainline, with direct rail services to London.
The average property price in Preston is around £190,000, while rental yields range between 6% and 8%, depending on location and tenant type. With the City Deal pumping millions into housing, roads, and jobs, Preston is moving toward becoming a modern northern hub. Long-term lets for students, professionals, and families all perform well, and short-term lets—particularly in centrally located apartments—are gaining traction.
Manchester and Liverpool: Still Solid, But Less Affordable?
Manchester and Liverpool remain two of the North’s most powerful urban economies, attracting inward investment, start-ups, students, and global employers. Both cities offer liquidity and resilience in the property market, especially in prime locations.
However, their affordability has shifted. Average property prices in Manchester now sit between £250,000 and £300,000, while Liverpool hovers around £210,000 to £240,000. Rental yields are still solid—Manchester offers 5%–6%, Liverpool 6%–7%—but they no longer offer the standout value of smaller towns nearby.
In Manchester, the booming city centre has also seen saturation in the luxury apartment market, with intense competition and high service charges eating into net yields. For investors seeking higher returns and lower risk, fringe areas like Salford, Oldham, or Stockport may be more appealing.
Short-Term vs Long-Term Let Strategies
In the Northwest, short-term lets are growing quickly thanks to flexible work patterns, tourism, and the rise of contract-based employment. Towns near beaches, universities, or major employers see strong demand for fully furnished, flexible stays. In Morecambe or central Preston, short-term lets can significantly outperform traditional lets—provided they are managed well and meet local licensing rules.
Long-term lets, however, remain the core of stable property portfolios. Areas with strong schools, employment, and local amenities—like Warrington’s suburbs or Preston’s outskirts—are ideal for professional or family tenants seeking security. These properties offer consistent cash flow and less hands-on management.
Conclusions: Invest Smart, Go North
The Northwest of England continues to offer compelling value for property investors in 2025. Whether you’re looking for cash flow through short-term lets or stability through long-term tenancies, towns like Warrington, Morecambe, and Preston offer high yields, low prices, and strong economic narratives.
While Manchester and Liverpool still hold weight, smaller towns offer greater headroom for return on investment. With the right research and management strategy, the Northwest isn’t just a fallback—it’s a forward-looking play for landlords and investors ready to grow.
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