From our Senior Officer & Business Leader, People and Operations

An expert review of the coastal property market in 2025
Introduction
Recently, we’ve witnessed interesting shifts in the coastal property market. After an initial surge in property prices during the pandemic, many of these areas have now experienced a drop in values. At first glance, this might sound concerning for some investors, but for others, it opens up exciting opportunities that are too good to ignore.
Market Trends and Recent Changes
According to Savills’ Prime Regional Index, coastal property values rose by 25% from early 2020 to their peak in late 2022. However, by Q3 2022, economic pressures—including the effects of the Truss mini-budget, rising inflation, and interest rate hikes—resulted in a housing market downturn, leading to an 11% drop from Q3 2022 to Q3 2024. Even so, coastal property values remain 11% above pre-pandemic averages (Q3 2017–2019), slightly exceeding the 10% increase seen across other UK prime regions.
Coastal buyers and sellers in England and Wales will also need to consider the new Stamp Duty Land Tax surcharge for second homes announced in the Autumn Budget when setting prices and submitting offers.
Pandemic Boom and Market Correction
During the pandemic, an incredible number of people sought refuge in coastal areas, drawn to their stunning views, fresh air, and tranquil scenery. The hustle and bustle of city life felt overwhelming, and many found solace in seaside communities. These regions quickly became highly sought after, leading to skyrocketing property prices. However, as the world began to settle back into a new normal, that initial excitement faded, and a price correction began. For potential buyers and those drawn to a coastal lifestyle, this correction is actually turning out to be a positive development, making these desirable properties much more affordable.
The Appeal of Coast Living
This newfound affordability is an encouraging sign for anyone looking to enjoy a life enriched by nature and leisurely activities. For remote workers seeking a change of scenery away from the office or retirees in search of the perfect peaceful retreat, coastal living might now be within reach. Imagine waking up to the sound of waves, spending afternoons on sandy beaches, and enjoying a cup of coffee while watching the sunrise over a British seascape. It’s not just a dream anymore; for many, it could soon be a reality.
Considerations for Buyers
This legislation means that owning additional properties could soon become more costly, making it essential for both current owners and those considering a purchase to factor this into their financial planning.
Investment Potential
Investing in coastal properties now might be a wise move for those savvy enough to see the potential. As these areas regain popularity, property values may rise again in the future. Coastal homes are often highly sought after as holiday rentals too, providing good returns on investment for those looking to generate income through short-term letting. With the right approach, owning a coastal property could not only enhance your lifestyle but also serve as a smart financial investment with the long lasting attraction of the sea remaining strong.
Conclusion
For anyone contemplating entering this market, it’s important to dive deep into understanding the local landscape. Each coastal region has its own unique characteristics, and potential buyers should ensure they have a comprehensive survey and valuation completed by a registered valuer. This will help clarify how the coastal environment can impact the value and condition of the property. Doing thorough research and seeking advice from local property experts can make a world of difference in making informed decisions.
While the coastal property market is navigating a phase of adjustment, now might represent a golden opportunity for those who aspire to live by the sea. Whether you’re looking for a serene getaway, a place to call your own, or a smart investment, the current landscape is ripe with possibilities. Embrace the chance to find that perfect coastal gem and make the seaside lifestyle your own.

Contact Our Team
Whether you’re considering your first coastal property or seasoned investor, you can rely on Watsons to support your journey with award-winning excellence. For more information about our property services, contact us today:
Customer Service Team
18 Meridian Way, Meridian Business Park, Norwich, NR7 0TA
t: 0333 220 1234
e: survey@watsons-property.co.uk
