"Cities tend to offer greater employment opportunities, transport links and long-term rental demand, all of which help to support constant steady price growth even during more uncertain market conditions"
- Steve Foreman - The Property DriveBuy
According to research by Property DriveBuy, cities have seen average house prices rise by 3.4% in the last 12 months, compared with 2.5% across the wider UK market. Coastal towns, by contrast, have experienced declines of up to -6.9%, while countryside homes saw moderate increases.
The Property DriveBuy study analysed November 2025 data from the UK House Price Index, comparing 20 major cities, 20 popular seaside towns, and 20 countryside locations to assess which areas delivered the strongest returns for homeowners.
Strong growth in city housing
Across the 20 major cities analysed, average annual house price growth stands at 3.4%, bringing the average city home to £225,377. Liverpool led the way with an 8.5% increase, followed by Sunderland at 7.4% and Bradford at 6.1%. Glasgow, Edinburgh, Newcastle, and Manchester also saw prices rise by more than 5% year on year.
Only London and Birmingham saw declines, with average prices dropping -1.2% and -0.6% respectively.
Steve Foreman, founder and CEO of Property DriveBuy, explained: “City markets continue to benefit from a strong imbalance between supply and demand, with buyer appetite remaining high while the number of homes coming to market remains relatively constrained. Cities tend to offer greater employment opportunities, transport links and long-term rental demand, all of which help to support constant steady price growth even during more uncertain market conditions.”
Countryside homes maintain steady performance
While cities lead in growth, countryside properties remain in steady demand. Across 20 rural locations, average house prices increased 2.3% over the year, rising from £266,726 to £272,879. Alnwick and Morpeth topped the rural performance chart with 8.3% growth, followed by Bangor at 7.7%, Nantwich at 6.7%, Chagford at 5%, and Dumfries at 4.5%.
Some locations saw price reductions, including Tetbury with a -8.4% decline and Lewes at -2.5%. Foreman noted, “We always expect countryside locations to maintain a steady performance. Demand is reliable while supply—certainly in the most rural spots—remains limited, so prices are easy to protect.”
Coastal markets see correction
The study highlights that seaside housing markets are cooling after years of strong demand. Across 20 coastal towns, average prices fell 1.0%, declining from £276,615 to £273,921. The steepest drops occurred in Aberystwyth (-6.9%), Tenby (-5.2%), and Hastings (-4.5%).
However, not all coastal locations experienced declines. Porthmadog saw a 3.4% rise, followed by Tynemouth (2.5%), Southend (1.9%), Whitby (1.4%), and Crosby (1.2%).
Foreman added, “The same can usually be said for our coastal markets. But seaside prices appear to have cooled following several years of exceptional demand, starting with the 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, paving the way for a return to price growth in many coastal locations.”
