Reversal of Pandemic-Induced Housing Trends: City Living Makes a Comeback
One of the most pronounced shifts in the UK property market during the pandemic was the urban exodus — a widespread migration from cities to rural and coastal regions. With remote work becoming the norm, buyers sought larger homes, outdoor space, and a slower pace of life. Seaside towns and countryside villages experienced a boom in demand, pushing property prices up in places that had previously seen modest interest.
But that trend is now reversing.
New data from Rightmove reveals that coastal and rural areas are beginning to cool, both in terms of price growth and buyer interest. Properties in locations such as Cornwall, Devon, Cumbria, and Norfolk are taking longer to sell, with some areas seeing a significant build-up in available stock. Annual price growth in these regions has slowed to just 1%, a dramatic deceleration compared to the double-digit increases seen during 2020–2022.
Agents in these areas report a growing number of “pandemic purchasers” looking to sell, particularly those who may have overextended financially or found the slower lifestyle less sustainable once office work resumed.
At the same time, cities are back in favour. The Rightmove search index shows London has reclaimed its spot as the most searched-for location among UK property hunters. Demand is especially strong in Zones 2–4, where buyers can still find relatively affordable flats with good transport links.
Factors driving the urban revival include:
Return to office mandates: Many employers are now requiring hybrid or full-time in-office attendance.
Lifestyle preferences: After several years of isolation, there's renewed desire for social, cultural, and professional connectivity.
Rental rebound: Landlords and investors are returning to city centres due to rising rents and strong tenant demand.
This trend is not limited to London. Cities like Manchester, Birmingham, Bristol, and Leeds are also experiencing renewed buyer interest, especially among first-time buyers and young professionals.
While outdoor space and home offices are still valued, many buyers are once again prioritising location, connectivity, and amenities. Proximity to transport hubs, cultural attractions, and vibrant social scenes is back at the top of many wishlists.
Notably:
Flats and maisonettes are selling faster in urban areas than in the previous three years.
Time on market for city homes has dropped by up to 20% compared to 2023.
Investor interest in short-let and buy-to-let properties in city centres is rising, fueled by tourism recovery and student demand.
This reversal highlights the fluidity of buyer behavior in response to wider social and economic shifts. It also underscores the importance of timing and location when it comes to property investment.
Sellers in coastal areas may need to adjust their expectations, both in terms of pricing and time-to-sale. Urban developers and landlords, meanwhile, could benefit from renewed demand and rising rental yields.
Forecast for 2025
Expect continued growth in urban markets, particularly in the South East and Midlands.
Rural and coastal markets will likely stabilize rather than decline dramatically.
Commuter towns offering a balance of green space and transport access (e.g., St Albans, Reading, Sevenoaks) may become new hotspots.
For further reading
https://www.gov.uk/government/collections/uk-house-price-index-reports