Seaside house prices tumble as end of the WFH era lures buyers back to city suburbs
Coastal locations that were hot property during the pandemic have seen house prices fall back down to earth, as buyers going back to the office now favour affordable suburbs.
Outside of the niche central London property market, the locations with the biggest price falls since the housing market peak in late 2022 are nearly all by the sea, according to data from estate agent Hamptons.
This includes Hastings, where house prices grew by nearly a third between the second half of 2019 and the second half of 2022, peaking at £278,060.
This was impacted by the 'race for space' trend during the pandemic, when successive lockdowns encouraged some buyers to seek homes with extra space.
The three areas with the biggest price falls since the pandemic housing market peak are in central London – the City of London, Westminster, and Kensington and Chelsea, according to data from estate agent Hamptons.
But these enclaves suffered due to an array of specific factors affecting the super-wealthy, including higher taxes on second homes and the abolition of non-dom tax status.
The Covid pandemic saw a rush of buyers newly able to work from home seizing the opportunity to move further away from towns and cities, often prioritising country and coastal locations which were closer to nature.
Now, though, many workers are being asked to attend the office more regularly - which means out-of-the-way locations are less practical.
The change may also be down to additional costs for second home owners.
Buyers will have to contend with higher stamp duty on second home purchases, a policy announced in the Autumn Budget, while those who already own a second home could see their council tax bill double.
Prices in Hastings fell by 8 per cent to £209,760 between 2022 and 2024, according to Hamptons.
Those who own homes there haven't seen all their gains wiped out, though, as prices are still up 22 per cent compared to 2019.
In Thanet, home to hipster hotspot Margate as well as popular seaside resorts Ramsgate and Broadstairs, prices rocketed by nearly 27 per cent between the second half of 2019 and the second half of 2022 to reach £298,040.
Since then though, they have fallen back by 7.4 per cent to £276,050 – though buyers will still have made a 20 per cent gain.
Torridge in North West Devon has also seen price falls. The coastal district, which includes the towns of Bideford and Great Torrington, saw average prices peak at £297,010 at the end of 2022, having surged by 33.2 per cent during the pandemic. They have since fallen by 7.4 per cent to £275,130.
Eastbourne, Hertsmere, Torbay and Worthing rounded out the top ten price fallers, with Hetfordshire's Hertsmere the only one of these locations not on by the sea.
There are beach towns which have continued to grow – though they haven't maintained their pandemic momentum.
Neath Port Talbot in Wales has had the largest overall price growth of any coastal 'race for space' location between 2019 and 2024.
It saw growth of 36.2 per cent in 2019-22, followed by growth of 2.5 per cent between 2022 and 2024, meaning prices now sit at £154,970.
Convenient commutes see city suburbs boom
While they may be less aesthetically appealing than the coast, Hamptons data shows that the suburbs of big cities such as Manchester, Liverpool and Birmingham are among today's biggest house price risers.
Many of these areas offer quick car or train commutes in to the city centre - helpful for those who are back in the office every day.
The data also revealed a focus on more affordable areas, with many of the places on the list having house prices well below the national average of around £268,000.
In 2023-24, Manchester's M8 postcode saw the biggest house price rise of any city location, rising 16 per cent to £207,900. It is to the north of the city centre and includes Crumpsall and Cheetham Hill.
Popular: Manchester's Crumpsall is one of the biggest house price risers of 2023-24
Liverpool's L27 postcode witnessed a 14.2 per cent jump from £131,320 to £149,920. It covers Netherley, a suburb to the south east of the city centre.
Leeds' LS2 district, which covers the city centre and Woodhouse neighbourhood, saw a 13 per cent rise to £171,730 which meant properties added just shy of £20,000 of value across the year.
Birmingham's B6 postcode, which takes in Aston, Birchfield and Witton and is the home of the Villa Park stadium, saw the fourth-largest price rise of any city postcode at 11.1 per cent according to Hamptons.
This meant properties increased in value from £151,020 to £167,760.
Best mortgage rates and how to find them
Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs.
That makes it even more important to search out the best possible rate for you and get good mortgage advice.
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