Leeds, Manchester, Sheffield, Liverpool – for years now these cities have been part of the great Northern Powerhouse.
The term, coined by then Chancellor George Osborne back in 2014, referred to the cities uniting economically to ‘take on the world’, or at least the dominance of London and the South East in the UK. And certainly, there has been a push for investment and jobs in the north, in addition to massive regeneration projects.
Even the BBC became less London-centric by moving its HQ to Salford, Manchester. Infrastructure too has been given a boost with investment in the Great North Rail Project to make travel quicker between northern cities. There are also plans for HS2 to eventually reach as far as Leeds.
In terms of property, in recent months, Zoopla recorded Manchester, Liverpool, and Leeds as the UK cities with the highest growth in property values, at 7.4%, 7.1%, and 6.2% respectively.
Manchester
Manchester continues to be one of the cities to have benefitted most from the concept of a Northern Powerhouse — in fact, it’s often regarded as being at the heart of it.
A vibrant, growing and increasingly confident city with a population of 635,000, Manchester enjoyed employment growth of 92% between 2005 and 2022, and it remains the top city for young professionals outside London today, according to Hamptons International.
At present 2025, the average property in Manchester is £268,400, with average rental yields of 5.58%. Property growth of 16.20% is projected over the next five years.
Liverpool
Liverpool hasn’t benefitted to the same extent as Manchester from the influx of population and investment the Northern Powerhouse has promised — but that is rapidly changing. The Liverpool Waters scheme — a massive £5.5 billion transformation of the city’s docklands — is bringing in new commercial spaces, residential apartments, retail outlets, restaurants, museums, and an arts quarter. It’s also boosting tourism significantly.
Property analysts highlight the Baltic Triangle, which encompasses the Liverpool Waters scheme and city centre, as an area commanding yields of up to 8.4%. The city’s population currently stands at 516,000.
The average property in Liverpool is £201,890, with rental yields at 5.42%. Forecasts predict 9.10% property growth over the next five years.
Newcastle
With a population of around 313,100, Newcastle remains the largest city in the north-east of England. Regeneration efforts continue to reshape the city, including the £350 million Newcastle Helix urban development. The £200 million Stephenson Quarter and ongoing upgrades in Ouseburn are also significant contributors to the city’s renewal.
Newcastle is home to a growing number of digital tech start-ups, and hosts major names like BT and Virgin at Gosforth Business Park, alongside Deloitte, Greggs, and Nestlé.
The average property price in Newcastle is £213,450, with rental yields averaging 6.63%. Five-year growth is expected to reach approximately 6.85%.
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Author
Sam Clayton
