The Great Coastal Cool-Off
Why the Current Market Shift Is a Golden Opportunity for Property Investors And how Auction House London is helping buyers and sellers capitalise on it
The UK’s rural and coastal property markets were booming a few years ago. The pandemic fuelled a frenzy as urban homeowners sought second homes and lifestyle-driven escapes, believing remote working was the new normal.
But today, that once white-hot demand has cooled significantly in areas like Devon and Cornwall and the Lake District – and while that may sound like bad news, savvy investors know it could be exactly the break they have been waiting for. Lots 36, 45a and 85a featured in our April ’25 auction are fantastic examples of these types of properties. A six room building in Plymouth, a three bedroom cottage in Somerset and a four bedroom detached house in Cornwall are all listed in our two day auction on the 23rd and 24th of April.
What has changed?
Return to office life: The WFH boom is fading fast, with employers expecting a least a partial return to the office for most of their employees, reducing long-term demand in areas once prized for remote living.
Tax crackdowns: Recent hikes in stamp duty (now up to 17% for second homes) and widespread council tax increases (doubling in many regions) make ownership less financially attractive.
Holiday let changes: Former tax perks have been cut, hitting landlords’ bottom lines just as running costs – especially trades and maintenance – have surged.
Flatlining prices: Once-booming hotspots like Newquay and Bridport have seen sharp reversals in price growth, with some markets sliding into outright decline. The days of lockdown when coastal property markets were in boom now seem like a distant memory.
The data backs it up: According to Rightmove, coastal property prices rose just 1% in the past year – a far cry from the 4.5% growth in 2021. In some formerly red-hot areas, prices are now falling year on year.
What This Means for Investors
In uncertain markets, opportunity favours the bold – and the well-informed.
We are now seeing the return of value in previously overheated markets. Sellers who once held out for top prices are becoming more realistic, especially those under pressure from rising costs and regulatory changes.
This is where auctions come in.
Why Auctions Work in a Cooling Market
- Motivated Sellers: Rising taxes and softening rental yields are pushing second homeowners to sell fast.
- Better Pricing: With fewer lifestyle buyers, investors are finding less competition and better deals.
- Speed & Certainty: Unlike sluggish private treaty sales, auctions give buyers a fixed timeline and clarity from day one.
- Flexible Strategies: Whether your play is yield, capital growth, or redevelopment, auctions offer more opportunities than ever.
Why Investors Are Choosing Auction House London
We are seeing a clear trend: owners who need to move quickly choose the auction route and investors are responding. Auction House London connects buyers with realistic sellers, whether it’s a rural cottage with development potential, a former holiday let ready to refurbish, or a coastal home coming back to market at a fair price.
We provide expert advice, deep market knowledge, and national reach – ensuring you are in the best position to act wherever opportunity arises.
In a shifting market, confidence comes from having the right strategy.
If you are an investor looking to take advantage of changing tides, Auction House London is here to help you move fast, buy smart, and invest wisely.
Explore our upcoming auctions or speak to our team today.