We’re now halfway through 2025, and while the Lancaster property market isn’t as fast-paced as it was during the post-pandemic boom of 2020 to 2022, it’s still ticking along steadily. And honestly, that’s not a bad thing. A steady market often gives people more confidence and less stress when making big decisions.
I always say that owning a home is a long-term investment, not a quick win. So, let’s look at how Lancaster homes have performed over the last 20 years.
Since the summer of 2005, the average Lancaster homeowner has seen their property value increase by 48%. That’s a significant rise — and most of that gain has come from natural house price growth, although many people have added value by improving, extending or modernising their homes.
Here’s a simple breakdown by property type in Lancaster:
- All property types
• 2005 average: £127,234
• 2025 average: £186,869
• Profit: £59,635 total / £2,982 per year - Apartments
• 2005 average: £119,796
• 2025 average: £130,436
• Profit: £10,640 total / £532 per year - Terraced/Townhouses
• 2005 average: £109,093
• 2025 average: £177,223
• Profit: £68,130 total / £3,407 per year - Semi-detached homes
• 2005 average: £136,716
• 2025 average: £202,213
• Profit: £65,497 total / £3,275 per year - Detached homes
• 2005 average: £197,812
• 2025 average: £377,429
• Profit: £179,617 total / £8,981 per year
Now, while these numbers are strong, we mustn’t forget inflation. Over the last 20 years, prices for everyday goods and services have gone up by around 77% — so the true ‘spending power’ of that profit is less.
When we adjust the numbers for inflation, here’s what the real profit looks like:
- All property types – £33,654 total / £1,683 per year
- Apartments – £6,005 total / £300 per year
- Terraced homes – £38,448 total / £1,922 per year
- Semi-detached homes – £36,962 total / £1,848 per year
- Detached homes – £101,364 total / £5,068 per year
Even after inflation, these are still solid returns. And it proves something I often remind clients: even with ups and downs — like the 2008 financial crash — owning a home in Lancaster has been a smart long-term choice.
So, what does the future hold?
A big part of house price growth comes down to supply and demand. We simply don’t build enough homes in the UK. Last year, around 217,900 new households were formed, yet experts say we need around 300,000 homes built each year to keep up. That shortfall means demand stays high — which is good news for Lancaster homeowners.
Now, let’s talk about landlords. Some have been selling up in recent years due to tax changes and new rules. But even with that, the private rental market continues to grow, just more slowly than before. Many younger people in Lancaster still prefer renting for the flexibility it gives, and rental demand remains strong.
That said, being a landlord today takes more planning than it used to. Before 2017, buy-to-let was fairly straightforward. But with all the changes since then, landlords now need to think more like investors. You can’t just ‘let and forget’ anymore.
At JDG, we’ve shifted too. We don’t just collect rent. We help landlords plan for the future — whether it’s improving yield, planning for capital growth, or simply making sure their investment works for them.
If you’re a landlord and want to chat about your property goals, I’m here to help. There’s no pressure or cost — just honest advice.
And if you’re a homeowner, I hope this update shows you that even with all the changes over the years, owning a home in Lancaster has been a smart move.
Warm regards,
Michelle x
