Five years after the initial COVID-19 lockdown, the UK housing market has experienced significant shifts. The pandemic-induced trends, such as the migration to coastal and rural areas, have largely reversed, with urban living regaining popularity.
During the pandemic, there was a notable shift as many sought larger homes in rural or coastal areas, driven by remote work and the desire for more space. This led to a surge in demand and prices in these regions. However, recent data indicates a reversal:
Increased Time on Market: Coastal properties now take an average of 73 days to sell, up from 52 days in 2021.
Price Stabilization: Annual price growth in seaside locations has slowed to 1%, aligning with the national average.
Urban Demand Rebounds: London has reclaimed its position as the most-searched location on property platforms, with 58% of Londoners now preferring to stay in the city.
First-time buyers are encountering increasing hurdles:
Rising Entry-Level Prices: The average asking price for a first-time buyer's home has risen by 17% over the past five years, from £195,463 to £227,965.
Wage Growth vs. Rent Increases: While wages have grown by 30%, rents have surged by 42%, making it more difficult for renters to save for a deposit.
Despite economic uncertainties, the housing market shows resilience:
Record Asking Prices: As of April 2025, the average UK home asking price reached £377,182, a 1.4% monthly and 1.3% annual increase.
Increased Market Activity: New listings have reached a ten-year high, influenced by more stable mortgage rates and renewed buyer and seller activity.
The UK housing market has undergone notable transformations since the pandemic's onset. While initial trends favoured rural and coastal living, urban areas have regained appeal as life normalises. Affordability remains a concern, especially for first-time buyers, but the market continues to adapt and evolve in response to changing economic conditions.
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