House prices in UK cities have significantly outperformed both coastal and countryside markets over the past year, as demand for urban living continues to outweigh supply, according to new research.
Analysis by Property DriveBuy of the latest UK House Price Index data for November 2025 shows that average city house prices rose by 3.4% year on year, well ahead of the national average increase of 2.5%.
Across the UK as a whole, the average house price now stands at £271,188. In contrast, the 20 major cities analysed recorded an average price of £225,377, underlining strong buyer appetite for locations offering employment opportunities, transport links and rental demand.
Liverpool posted the strongest city-level growth, with prices rising by 8.5% over the year. It was followed by Sunderland at 7.4% and Bradford at 6.1%. Other major urban centres also recorded robust growth, including Glasgow (5.8%), Edinburgh (5.7%), Newcastle (5.6%) and Manchester (5.3%).
Only two cities bucked the trend. London saw average prices fall by 1.2% over the year, while Birmingham recorded a more modest decline of 0.6%.
Countryside and market town locations delivered steadier, though more modest, performance. Across 20 rural locations analysed, average prices increased by 2.3%, rising from £266,726 to £272,879.
The strongest countryside growth was recorded in Alnwick and Morpeth, both up 8.3%, followed by Bangor at 7.7% and Nantwich at 6.7%. Chagford and Dumfries also saw solid gains of 5% and 4.5% respectively.
However, not all rural markets performed well. Five countryside locations saw annual price falls, with Tetbury experiencing the largest decline at 8.4%, followed by Lewes at 2.5%.
In contrast, the UK’s traditionally popular coastal housing markets have cooled notably. Across 20 seaside towns, average prices fell by 1.0% over the past year, dropping from £276,615 to £273,921.
The sharpest declines were seen in Aberystwyth, where prices fell by 6.9%, followed by Tenby at 5.2% and Hastings at 4.5%. Despite the overall downturn, some coastal markets did register growth, including Porthmadog (3.4%), Tynemouth (2.5%), Southend (1.9%), Whitby (1.4%) and Crosby (1.2%).
Steve Foreman, founder and chief executive of Property DriveBuy, said the divergence reflects shifting buyer priorities after the pandemic-fuelled boom in coastal living.
“City markets continue to benefit from a strong imbalance between supply and demand,” he said. “Buyer appetite remains high while the number of homes coming to market is relatively constrained. Cities offer employment, transport connectivity and long-term rental demand, which supports steady price growth even in uncertain conditions.”
Foreman added that countryside markets remain structurally resilient due to limited supply, while the slowdown in coastal locations appears to be a correction rather than a lasting trend.
“Seaside prices surged from 2020 onwards, but we’re now seeing a cooling,” he said. “As buyer confidence improves and mortgage rates stabilise, we expect demand for coastal homes to recover and price growth to return in many locations.”
Property DriveBuy said its geolocational property app allows buyers to view details of homes as they walk or drive past, and connect directly with agents even before properties are formally listed, as buyers continue to adapt to a changing housing market.
