"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"
- Adam Day - eXp UK
New research from eXp UK shows that house prices in the UK’s major cities are now rising faster than those in countryside or coastal locations, signalling renewed demand for city living.
Using the latest UK House Price Index data for May 2025, eXp UK compared average annual house price growth across 20 major cities, 20 coastal towns, and 20 countryside locations to assess which markets have delivered the strongest returns for homeowners over the past year.
The study found that while the average UK house price increased by 3.9% year-on-year, cities outperformed other markets, recording an average annual growth rate of 6.3%. This trend reflects renewed interest in urban living, with cities such as Newcastle, Liverpool, and Sunderland leading the way. Newcastle posted the highest increase, with house prices up 13.4% in the past year. Liverpool followed at 11.6%, while Sunderland saw growth of 9.6%. Of the 20 cities analysed, only Leicester registered a decline, with prices falling by 0.5%.
Countryside markets remain in favour with buyers, recording an average annual growth of 5.3% across the 20 rural locations analysed. Top-performing rural areas include Chagford, where prices rose by 15%, Market Harborough at 10.2%, and Cranbrook at 9.8%. These locations continue to attract buyers looking for more space and character, without being disconnected from major transport links.
By contrast, the coastal market has shown slower growth, averaging just 1.0% annually across the 20 seaside towns reviewed. Some towns outpaced the average, such as Crosby (8.6%), Porthmadog (7.0%), and Tynemouth (6.9%). However, several high-profile destinations saw house prices fall. Salcombe experienced a 5.3% drop, Aberystwyth declined by 6.9%, and Hastings fell by 1.9%. These downturns may reflect market corrections in locations where demand and pricing surged during the pandemic.
“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,” said Adam Day, head of eXp UK and Europe. “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 homebuyers."
“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.”
