Urban revival as UK City house prices outpace countryside and coastal markets

City living is staging a comeback, with house prices in major urban centres rising faster than those in the countryside or by the coast, according to new analysis by eXp UK.

The estate agency network compared annual price growth across 20 of the UK’s largest cities, alongside 20 coastal towns and 20 countryside hotspots, using the latest UK House Price Index data for May 2025.
It found that average property values in cities climbed by 6.3% over the past year, outpacing the national average of 3.9%, as well as rural and seaside markets.

Northern cities led the urban resurgence, with Newcastle recording an annual price increase of 13.4%, followed by Liverpool at 11.6% and Sunderland at 9.6%. Only Leicester posted a decline, with prices falling by 0.5%.

RACE FOR SPACE

Adam Day, Head of eXp UK and Europe, says: “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.”

But he adds: “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.”

BEST OF THE REST

Rural areas also performed well, with prices up 5.3% on average. Locations such as Chagford (15.0%), Market Harborough (10.2%), and Cranbrook (9.8%) led growth, buoyed by demand for character homes with good commuter links.

In contrast, coastal towns saw a more modest rise of just 1.0%, with several popular areas seeing prices fall. While places like Crosby (8.6%) and Porthmadog (7.0%) saw gains, others such as Salcombe (–5.3%), Aberystwyth (–6.9%), and Hastings (–1.9%) experienced price declines, likely reflecting overheated local markets and affordability pressures.

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