The coastal areas where real estate values are declining

Which areas are most impacted by the 2025 decline in property prices in several coastal hotspots?

Retirees and people looking to get away from the bustle of cities are often drawn to coastal properties, but many have been discouraged by the high cost of housing.

This might be changing, though, as new data shows that in 2025, home prices fell by as much as 6.9 percent in some of the most well-liked seaside towns.

The largest decline was in Aberystwyth, where average prices fell from 245,933 to 228,854, or 6.9%.

Tenby then saw a 5.2% decline, with average prices dropping from 220,673 to 209,122.

In fact, Property DriveBuy's analysis shows that between November 2024 and November 2025, prices in 20 UK seaside locations decreased by an average of 1 percent, from 276,615 to 273,921.

Hastings saw a 4.5 percent decline in house prices from 253,440 to 242,112, along with Aberystwyth and Tenby, according to Property DriveBuy.

In Bournemouth and Brighton, average home prices decreased by 3.8 percent (323,774 to 311,416) and 2.4 percent (417,876 to 407,919), respectively.

Property DriveBuy's founder and CEO, Steve Foreman, stated: "Seaside prices seem to have cooled after several years of exceptional demand beginning during the coronavirus pandemic in 2020.

These price declines, however, seem to be more of a correction than a long-term change.

"We anticipate that demand for homes by the sea will stabilize as buyer confidence grows and mortgage rates remain stable. The "

Thanks to DriveBuy Property.

What caused coastal areas to suffer in 2025?

Because it is more difficult for coastal areas to grow geographically and because a significant portion of their borders are encircled by the sea, which limits stock, home prices in these areas typically remain stable. Prices in seaside locations may also be supported by strong transportation connections to other major cities.

Why, then, did so many coastal locations decline in 2025?

One of the reasons, according to Foreman of Property DriveBuy, is a "renewed pull towards city living" that has grown since the coronavirus pandemic, when many buyers left urban areas for coastal areas.

Foreman stated, "Coastal living is starting to look less practical, especially for younger buyers without fully flexible working arrangements, as employers increasingly encourage a return to the office and with job opportunities still heavily concentrated in cities."

According to Foreman, older second-stepper buyers "who traditionally underpin coastal demand, have been more cautious in recent years."

Economic uncertainty and higher mortgage costs, which are a result of rising interest rates, have also reduced demand in coastal areas, which are popular places for people to relocate.

But Foreman contended that the "changing makeup of coastal communities themselves" has been the biggest contributor to declining coastal home values.

"Local residents have been gradually priced out of ownership in many areas, temporarily releasing stock that first-time buyers might have otherwise taken up."

Investors swiftly filled that void by turning houses into short-term vacation rentals. The local housing market's natural rhythm has been upset over time, which has weakened demand and decreased turnover. Paradoxically, this has led to decreased market activity and, in certain situations, pressure on prices to decline. A "

Popular rural and urban areas see an increase in home prices.

You'll probably have to pay more to move to major cities and rural areas if the cheaper real estate prices along the coast aren't enough to convince you to do so.

Property DriveBuy reports that between November 2024 and November 2025, prices in some urban and rural areas increased by as much as 8.5%.

The top of the list is dominated by cities in Scotland and northern England.

In Liverpool, prices increased from 170,536 to 185,023 (8.5 percent), while in Sunderland, prices increased from 133,948 to 143,824 (7.4 percent).

Bradford's average home price increased from 176,550 to 187,242 (6.1 percent), while Glasgow and Edinburgh saw price increases from 181,424 to 191,884 (5.8 percent) and 280,753 to 296,878 (5.7 percent), respectively.

Only two cities saw price decreases during the 12-month period: London (-1.2 percent) and Birmingham (-0.6 percent).

According to Property DriveBuy, prices increased by an average of 2.3 percent in the top rural areas during the 12 months leading up to November.

The average price increased from 206,955 to 222,919 (7.7 percent) in Bangor and from 195,519 to 211,838 (8.3 percent) in Alnwick.

Home prices in Tetbury fell from 469,121 to 429,773 (8.4 percent) and in Lewes from 378,536 to 369,070 (2.5 percent).