City living revival outpaces rural and coastal markets

A fresh wave of enthusiasm for urban life has propelled house prices in the UK’s major cities to outstrip those in coastal and countryside regions, research reveals.

According to new findings from eXp UK, which examined the UK house price index data for May, reveals that city properties have seen a robust annual growth rate of 6.3%.

That compares with 5.3% for rural areas and a modest 1.0% for seaside towns.

The analysis compared property value increases across 20 leading cities, 20 sought-after coastal towns and 20 rural locations over the past year.

Cities are driving price rises

The head of eXp UK, Adam Day, said: “Following several years where rural and coastal markets stole the spotlight during the race for space and the Covid exodus of major cities, our latest research shows that cities are once again driving house price growth.

“The strength of the urban market reflects changing lifestyle priorities, the return of office working and ongoing investment in city infrastructure, all of which are influencing the next generation of homebuyer.”

He added: “That said, countryside living remains a solid choice, especially in well-connected market towns, while the coastal market appears to be flatlining to an extent, following years of inflated price growth due to high demand and restricted stock levels.”

Big rises in some cities

The firm says that while the national average house price rose by 3.9%, urban centres like Newcastle (13.4%), Liverpool (11.6%) and Sunderland (9.6%) showcased exceptional gains.

Only Leicester recorded a slight decline of 0.5% in the same period.

Rural areas remain a strong contender for buyers seeking tranquillity and charm.

Market towns such as Chagford in Devon (15.0%), Market Harborough (10.2%) and Cranbrook (9.8%) have driven countryside growth.

Buyers are attracted to balancing of space with access to commuter links.

In contrast, coastal towns have struggled to maintain momentum, with some areas like Salcombe (-5.3%), Aberystwyth (-6.9%) and Hastings (-1.9%) experiencing price drops.

However, pockets of strength exist in places like Crosby (8.6%), Porthmadog (7.0%) and Tynemouth (6.9%), though the overall coastal market remains subdued.

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