Thursday, 7 Dec 2023

The once thriving UK seaside town where house prices are now plummeting

This seaside town which operates as a busy port has suffered a drastic drop to property prices in recent months.

According to Zoopla, house prices in the gorgeous seaside town of Dover in Kent have plummeted by three percent, with the change amounting to £9,440.

The average house price in the area now stands at £301,000 – having been £310,440 in 2022.

Dover had seen an average house price growth during the pandemic as people ditched city living for being closer to the seaside.

Meanwhile, prices in cities like Edinburgh, Birmingham, Nottingham and Leeds are all up by at least 0.4 percent.

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In their report, Zoopla said: “In the North of England, Scotland and Wales, house prices are continuing to rise slowly due to the lower average value of properties.

“All regions across the South of England, as well as the East Midlands, have seen house prices fall in the last year – by up to -1.5 percent.

“Higher mortgage rates have a bigger impact on buyers in these higher-value housing markets, where they need bigger deposits, larger mortgages and higher incomes.

“This is preventing more people from moving in the South of England, reducing house price growth.”

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Properties in Dover are priced above the UK average thanks to its idyllic location for those looking to live near the port that has daily ferries to Calais in France.

It’s also home to the iconic White Cliffs of Dover and a beach – making it a great spot for those looking to move to the seaside while being close to major transport links.

But with mortgage rates on the rise, this has had a big impact on buyers who have had to lower their budgets to accommodate the extra costs.

According to Zoopla, the House Price Index is expected to record small monthly falls in house prices up until the end of the year and into 2024.

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They said: “We anticipate that house prices will be two percent to three percent lower at the end of 2023 than at the start. This would leave house prices 17 percent higher than at the start of 2020, with the pandemic house price growth providing a large buffer to the current price falls.

“Mortgage rates over five percent are consistent with fewer sales and small annual house price falls. If mortgage rates unexpectedly move closer to four percent in the coming months, more buyers will come back into the market. This will importantly support sales volumes, but it does not mean house prices will rise again in the immediate future.”

There is also a squeeze on disposable income due to higher costs of living as people cut back on their spending.

In turn, this means fewer people are looking to buy in Dover and other South East seaside towns and are instead opting for more affordable locations.

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