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Bouncing Back to the Big Smoke: London Regains its Crown as Property Search Heartland
Hark back to the days of nationwide lockdowns during Covid-19, and our Homes transformed into confined fortresses. The longing for serene countryside and coastal landscapes fueled a fierce competition among buyers, willing to pull out all stops to nab properties in picturesque spots.
However, beat the drum, for the so-called 'race for space' has subsided, according to Rightmove. Let's delve into the numbers. In March 2021, the sunflower fields of Cornwall outshone the bustling streets of London as the most sought-after area on the property portal for the very first time. But, oh how the pendulum swings! London has regained its esteemed position as the most searched-for location on Rightmove.
The uptick in London's popularity has left a trail of muddy footprints, as 58% of Londoners are now planning to stay put, a significant leap from the 59% just a year before the pandemic. Concurrently, London's coastal areas are currently facing a real estate slump, with homes taking an average of 3 weeks longer to sell, up from a mere 52 days in 2021, to a hefty 73 days in 2023. Even the capital's city center has seen a slight increase in this timescale, from 63 to 65 days.
The tide has turned, and Londoners have cast off their coastal longings, owing to a myriad of reasons. Jamie Freeman of Haringtons UK sheds light on the situation: 'After five years since the first lockdown, things have certainly shifted. The cost-of-living crisis, climbing mortgage rates, and the resurgence of office life, have made the coast an unfeasible second home for many Londoners. The commute becomes a tedious endeavor, and the double-homing costs are no longer sustainable, at least in the current economic climate.'
David Johnson of property consultancy INHOUS reiterates Jamie's observations, highlighting an inevitable return of buyers and renters to London, a sentiment shared by many who discovered the dated charm of the local hustle and bustle and unparalleled lifestyle options.
Boosting London's allure further are the overseas buyers and investors who have started making a comeback in the city's real estate market.
But let's not forget about house prices. UK Properties nestled by the sea experienced a 4.5% surge during the initial year of Covid-19, eclipsing the national 2.7% yearly growth. However, in 2023, coastal area asking prices have only seen a meager 1% increase, a figure that aligns with the national average.
David Johnson explains this discrete rise in coastal property prices, "Some Londoners who sought refuge in the countryside found that rural living was not their cup of tea, while others are compelled to return to the office more often, precipitating the sale of their countryside homes in favor of a return to the city."
The transition found further support with the imposition of higher taxes, including escalating council taxes on second homes, which drove more second homeowners to sell, thus offering potential buyers a broad array of choices, empowering them during negotiations.
Despite the mounting evidence of a reversal, Rightmove's research still underscores an enduring emphasis on space. Over the past five years, the asking prices of semi-detached houses have witnessed the greatest increase (23%), while flats have seen the weakest growth (7%).
Geoff Wilford of Wilfords London offers an insightful perspective on the current market dynamics, "The lockdowns catalyzed a collective reevaluation of what a home should be, beyond having a home office. We yearn for spaces to breathe, to move, and to live life to the fullest. It's not only about bigger homes; we seek adaptable dwellings that cater to various aspects of our lives."
Sources:
[1] ONS, House Price Index, June 2025 (https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/ukhausepriceindex/june2025)
[2] Halifax, Eroding Assets: Understanding Coastal Home Valuation Challenges (https://www.halifax.co.uk/reports/coastal-homes-erosion)
- London's resurgence as the most searched-for location on Rightmove has resulted in increasing interest from overseas investors, who are seeking opportunities in the city's property market, as a means of investing in real-estate.
- As the cost-of-living crisis and climbing mortgage rates make the coastal life an unfeasible second home for many Londoners, they are turning their attention back to the city's real-estate market for both buying and investing purposes, marking a significant shift in the property market trends.
