The property market in the United Kingdom is undergoing a remarkable turnaround as post-pandemic work-from-home trends first continue unwinding. Cornwall’s Port Isaac, Kent’s Margate and North Somerset’s Clevedon were all once bustling centres. Today, these regions are at the forefront of change in buyer preferences. This change is part of a larger reconsideration of home and community desires and needs in the wake of the COVID-19 pandemic.
In early 2020, countless Americans abandoned cities for coastal and rural retreats. During the pandemic, they wanted bigger houses, more greenery and access to nature as the lockdowns rolled on. Scotland’s east coast East Neuk of Fife became an extremely attractive area during this time. Similarly, Canford Cliffs in Poole, Dorset became a desirable destination for homebuyers. The home working revolution prompted individuals to rethink their living situations, with many believing they could escape urban environments without sacrificing professional responsibilities.
Now, as life is slowly but surely getting back to normal, so too has the fervor for these popular places once thought to be so desirable. A 2022 survey indicated that 12% of individuals who moved during the pandemic felt they rushed their decisions and now harbor regrets. Furthermore, 15% say they are unhappy with their current residences and plan to move again.
Some of the former city dwellers go to sell their coastal properties. They are returning to urban areas in response to this growing sentiment. It’s no surprise that coastal homes are even now taking longer to attract serious buyers. In the background, price growth has leveled out with more properties coming on the market, likely from folks coming back into the city. According to a spokesperson for property portal Rightmove, the trend of people moving out of cities has slowed. With life back to business as usual—at least in many parts of the country—the remote versus in-person work debate rages on.
The effect on property values shows just how far this fight has gone. In the first year of the pandemic, homes with ocean views saw a 4.5% increase in average asking price. New data shows that this yearly growth for our nation’s coastal communities has suddenly dropped to a crawl—increasing by only 1% a year. This development is indicative of what we’ve experienced throughout the UK. Semi-detached and detached houses have seen significantly higher price rises compared to flats over the last five years.
In London, a dramatic turn came with buyer mood. Reports indicate that under half (47%) of potential homebuyers in the capital were inclined to remain there immediately after the pandemic. By March 2021, Cornwall had clearly taken the lead from London as the most popular area on Rightmove. That change was indicative of the increasing pull toward life on the coast.
Even with all of these changes, many aspects of the market have not changed significantly. As Rightmove points out, a premium still remains for having more space. This is a testament to the fact that even as buyers reimagine their ideal geographic location, the desire for more living space endures.
It’s anyone’s guess how long this will last, as would-be buyers reconsider their plans in the new normal of the post-pandemic world. Together, these rapidly changing consumer wants and needs and broader market forces will determine where the nation’s most desirable properties will be in the future.