The coastal locations where properties are losing value

Coastal properties are often popular with retirees or those who want to escape the hustle and bustle of cities, but high house prices have been a deterrent for many.

However, this could be changing as fresh data reveals house prices dropped in some of the most popular seaside towns by as much as 6.9% in 2025.

Aberystwyth saw the biggest drop of 6.9%, with average prices sliding from £245,933 to £228,854.

Start your trial of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

This was followed by a drop in Tenby of 5.2%, with average prices falling from £220,673 to £209,122.

In fact, prices in 20 UK seaside spots fell by an average of 1% from £276,615 to £273,921 between November 2024 and November 2025, according to the analysis by property portal Property DriveBuy.

As well as Aberystwyth and Tenby, a number of other seaside locations in south east England suffered house price blows, Property DriveBuy found, including Hastings which experienced a drop of 4.5% from £253,440 to £242,112.

Average house prices in Bournemouth and Brighton fell by 3.8% (£323,774 to £311,416) and 2.4% (£417,876 to £407,919), respectively.

Steve Foreman, founder and chief executive officer of Property DriveBuy, said: “Seaside prices appear to have cooled following several years of exceptional demand starting during the coronavirus pandemic in 2020.

“However, these price drops do appear to be more of a correction than a long-term shift.

“As buyer confidence improves and mortgage rates continue to stabilise, we expect demand for seaside homes to stabilise.”

Credit: Property DriveBuy

Why did coastal locations struggle in 2025?

House prices in coastal areas tend to stay resilient because it’s harder for them geographically to expand, with large parts of their borders surrounded by the sea, limiting stock. Good transport links to other major centres can also prop up prices in seaside spots.

So why did so many seaside spots slide in 2025?

Foreman, from Property DriveBuy, said one of the causes was a “renewed pull towards city living” which has increased after the coronavirus pandemic, when large swathes of buyers fled urban centres for coastal locations.

“As employers increasingly encourage a return to the office, and with job opportunities still heavily concentrated in cities, coastal living is beginning to look less practical, especially for younger buyers without fully flexible working arrangements,” Foreman explained.

At the same time, older second-stepper buyers “who traditionally underpin coastal demand, have been more cautious in recent years”, Foreman said.

Higher mortgage costs, caused by higher interest rates, and economic uncertainty have also dampened appetite in coastal areas, locations people typically target when upsizing.

However, Foreman argued the greatest factor in falling coastal house prices has been the “changing makeup of coastal communities themselves”.

“In many areas, local residents have been gradually priced out of ownership, temporarily releasing stock that might otherwise have been absorbed by first-time buyers.

“That gap was quickly filled by investors converting homes into short-term holiday lets. Over time, this has disrupted the natural rhythm of the local housing market, reducing turnover and weakening demand. Ironically, the result has been less market activity and, in some cases, downward pressure on prices."

House prices in popular city and countryside locations rise

If lower property prices on the coast aren't enough to persuade you to make the move, you’ll likely have to fork out more to relocate to the major city and countryside spots.

Prices across some city and countryside locations went up by as much as 8.5% between November 2024 and November 2025, according to Property DriveBuy.

Cities in northern England and Scotland dominate the upper-end of the list.

Prices grew from £170,536 to £185,023 (8.5%) in Liverpool, followed by Sunderland where they jumped from £133,948 to £143,824 (7.4%).

The average price of a home in Bradford rose from £176,550 to £187,242 (6.1%) while prices in Glasgow and Edinburgh increased from £181,424 to £191,884 (5.8%) and £280,753 to £296,878 (5.7%), respectively.

Prices in just two of the cities fell over the 12 month window – London (-1.2%) and Birmingham (-0.6%).

The top countryside locations saw prices go up by an average of 2.3% in the 12 months to November, Property DriveBuy found.

In Alnwick, the average price jumped from £195,519 to £211,838 (8.3%) while in Bangor it rose from £206,955 to £222,919 (7.7%).

Prices in Lewes fell from £378,536 to £369,070 (2.5%) and in Tetbury, where home prices plummeted from £469,121 to £429,773 (8.4%).