The UK housing market ended 2025 with slower growth but remained resilient, while Chester and the Northwest showed stronger price rises, outperforming the national average, with demand holding up despite higher mortgage rates, though sales volumes dipped, and forecasts suggest continued, albeit gentler, price increases through 2026, with Chester remaining pricier than many regional towns.
UK Housing Market Trends
- The UK market ended 2025 on a softer note, with annual price growth slowing significantly by December, though overall 2025 was described as resilient.
- Mortgage rate remaining high, but mortgage approvals stayed near pre-pandemic levels, indicating underlying demand with Base rate reducing this will help the market movement for growth.
- Modest price growth (2-4%) was predicted for 2025, with potential for more positive trends in 2026 as interest rates potentially fall further.
- The Northwest was a top-performing region for growth in 2025.
Chester and the wider Cheshire West & Chester area saw house price growth exceeding the Northwest and UK averages in 2025.
- In mid-2025, Chester city prices averaged around £299,000, with the borough around £258,000, higher than the regional average.
- Detached properties are significantly more expensive, while flats remain the most affordable.
- Private rents rose considerably in late 2025, with significant annual increases.
- Offers strong regional growth but is more expensive than many areas.
- Expect continued price increases, potentially better deals for buyers in some areas, and a hopeful outlook as mortgage rates adjust