What are Rightmove's predictions for housing market 'winners' in 2025 and how can I invest in those areas?
Quick Answer
Rightmove anticipates Northern and Scottish markets will outperform in 2024. Investors should target these areas for potential growth, focusing on robust rental yields and capital appreciation.
## What are Rightmove's Predictions for 2025 Housing Market 'Winners'?
Rightmove's predictions for 2025 often focus on areas exhibiting strong buyer demand, relative affordability, and good rental yield potential. While specific 'winners' can shift, historical trends suggest areas outside London, particularly in the North and Midlands, along with commuter belts, are frequently highlighted. These areas typically benefit from ongoing regeneration projects, infrastructure improvements, and a more accessible price point compared to the capital. Such predictions are usually based on metrics like search volume, asking price growth, and sales agreed data.
## How Can Investors Identify and Evaluate These Predicted 'Winner' Areas?
Identifying and evaluating predicted 'winner' areas involves looking beyond headline figures to local market fundamentals. For investors, this means examining local economic growth, employment rates, and planned infrastructure developments. Councils' local plans can offer insights into future housing and commercial projects. For example, a city with a new university campus or a major transport link being built often signifies increased demand. It's also important to assess the local rental market; a strong rental yield, perhaps 7% or more in some northern towns, often indicates robust tenant demand, which is crucial for buy-to-let investments.
## Does Investing in Predicted 'Winner' Areas Affect My Tax Obligations?
Investing in areas predicted for growth doesn't alter the fundamental tax structure, but potential higher capital appreciation can lead to a larger Capital Gains Tax (CGT) liability. If you're a higher-rate taxpayer, CGT on residential property gains is 24% (after the £3,000 annual exempt amount), compared to 18% for basic-rate taxpayers. For a property bought for £150,000 and sold for £250,000, after expenses and the annual allowance, a higher-rate taxpayer could face a CGT bill of around £20,000. Additionally, Stamp Duty Land Tax (SDLT) for additional properties remains at a 5% surcharge, meaning a £200,000 investment property incurs 5% on the first £125k (£6,250), 7% on the next £125k (£5,250), totalling £11,500. This is paid upfront, regardless of future appreciation.
## What Factors Influence Property Appreciation in These Areas?
Several factors contribute to property appreciation in Rightmove's predicted 'winner' areas. Local demographics, such as a growing young professional population, can drive demand for rental properties. Accessibility to amenities, schools, and transport links also plays a significant role. For instance, a property near a direct train line to a major city will often command higher rents and sales prices. Furthermore, the local council's discretionary policies, like the potential for up to 100% Council Tax premium on second homes from April 2025, must be considered, though properties let on assured shorthold tenancies are typically exempt as the tenant pays. Understanding these local nuances is key to a successful investment.
## Investor Rule of Thumb
Do not invest solely based on predictions; always conduct thorough local due diligence, focusing on sustained rental demand and achievable yields, before committing to a property.
## What This Means For You
While Rightmove's predictions can highlight promising regions, successful property investment comes from understanding the granular details of local markets, not just broad trends. Most investors don't lose money because of a bad prediction, they lose it because they neglect the local supply and demand dynamics and tax implications specific to their deal. If you want to know how to properly analyse a deal in these predicted 'winner' areas and understand the true costs, this is exactly what we teach inside Property Legacy Education.
Steven's Take
Rightmove's forecasts provide a useful starting point, but as an investor, you must dig deeper. I've built my portfolio by understanding that broad market predictions don't replace local knowledge. For example, knowing that a certain council is planning a new business park, or that a specific street has a high demand for HMOs, is far more valuable than a general 'North of England' prediction. Always verify the demand and rental achievable on a street-by-street basis. My £1.5M portfolio wasn't built on national headlines, but on meticulous local research and understanding the real numbers.
What You Can Do Next
Review Rightmove's annual predictions and local market reports on their website (rightmove.co.uk) to identify potential areas.
Access local council websites (e.g., [your local council].gov.uk) to review their Local Plan, which details future development, infrastructure projects, and housing strategies.
Contact local letting agents in target areas to discuss current rental demand, achievable rents, and typical tenant profiles to assess yield potential.
Utilise online mapping tools (e.g., Google Maps) to assess proximity to transport, amenities, and employment hubs within specific neighbourhoods.
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