First-time buyers turn back to cities as coastal demand stalls

Coastal appeal cools as buyers seek job access and lower prices in regional cities

First-time buyers turn back to cities as coastal demand stalls

First-time buyer demand in UK cities has grown over the past decade, while interest in coastal areas has remained flat, according to a new report from Rightmove.

The analysis reviewed enquiries between January and May 2025 for homes typically purchased by first-time buyers — those with up to two bedrooms and compared with the same period in 2015. The report looked at activity in 50 of the largest cities outside London with 50 popular coastal areas based on buyer interest.

Across the cities studied, the average number of enquiries from potential first-time buyers rose by 16% compared to the same period in 2015. Some urban centres saw much larger gains. Dundee recorded the sharpest increase, with demand rising by 176%, followed by Edinburgh (+91%) and Doncaster (+74%).

In contrast, demand for coastal homes from first-time buyers has remained largely unchanged over the past ten years. The report noted no average increase in buyer interest in these locations.

London did not follow the broader urban trend. First-time buyer demand in the capital dropped by 7% over the decade, with high property prices cited as a likely factor. Both city and coastal areas analysed experienced similar average price growth of 41% over the same period.

“We’ve seen a number of changes to the property market over the last 10 years,” said Colleen Babcock, property expert at Rightmove. “Perhaps most notably is during the pandemic, when many people temporarily left cities and looked to the coast or countryside.

“Comparing where we are now versus a decade ago, it looks like there’s even more appeal from potential first-time buyers to live in cities, though the data does show that it can vary quite widely from city to city, and it will also depend how first-time buyer friendly a particular location is in terms of the type of homes that are available for sale.

“Coastal areas haven’t seen the same level of growth as cities from this type of buyer, and again it may be partly due to the availability of suitable homes in these areas for first-time buyers as well as affordability.”

Mary Lou-Press, president of industry body NAEA Propertymark, pointed to lifestyle and economic factors as key influences in buyer preferences.

“Coastal locations can offer a slower and more picturesque quality of life, compared to the vibrant fast-paced atmosphere of many cities,” she said. “This can be appealing for younger people due to greater economic opportunities, cultural attractions, and diverse amenities.

“It’s likely we will continue to see a shift in first-time buyer activity within city centres as London remains increasingly desirable yet unaffordable for many people stepping onto the property ladder for the first time. This is likely pushing many to enter more affordable cities, and it’s unsurprising that Scottish cities are placed firmly at the top, as these can offer a blend of career opportunities, landmarks, and access to green spaces, all at a lower cost than many other major UK cities.”

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