Five Kent seaside towns have been hit by a house price slump as Londoners are “cooling” on the idea of relocating to the coast.
A higher percentage of homes in Broadstairs, Herne Bay, Westgate-on-Sea, Deal and Birchington fell in value last year than anywhere else in the country.
In Broadstairs last year, 89% of homes fell in price – a higher proportion than in any other UK town. Picture: iStock
Thousands have been wiped off property prices, with experts blaming a decline in DFLs (people moving down from London), more people returning to work in offices – and the fact council tax for second homes is set to double from April.
Tom Ross-Bason, business development partner at Wards estate agents, told KentOnline: “Following an increase in DFLs after Covid, we are now seeing a cooling of that trend.”
Higher mortgage rates reducing buying power has also had a significant impact, with the number of house sales declining nationally.
But Mr Ross-Bason said: “Demand overall remains consistent, with buyer registrations at the same levels as this time last year.”
Some of the biggest house price drops have been in Thanet, which is Kent’s second home hotspot with almost 2,000 such properties. KentOnline revealed last year how the council tax bill for the owner of a second home which is a Band D property in the district is set to double to £4,604, following new legislation from the government enabling local authorities to hike the charges.
Tom Ross-Bason, business development partner at Wards estate agents
New research from Zoopla shows how almost nine in 10 homes (89%) in Broadstairs declined in value last year. On average, £15,300 was slashed off property prices in the town.
Meanwhile, in nearby Westgate-on-Sea, 87% of homes fell in value, by an average of £17,900 – while for Birchington, just over a mile further along the Thanet coast, the figures were 84% and £24,600.
Seaside towns in neighbouring districts saw similar price drops.
In Herne Bay, 88% of properties decreased in value, by an average of £16,300. In Deal, 85% of homes saw price drops, by an average of £11,700.
The latter was recently branded “Hackney-on-Sea” due to the number of Londoners who have moved there over the past decade.
The proportion of house prices rising and falling in Kent towns in 2024, according to Zoopla
But KentOnline recently reported how the percentage of Kent homes being snapped up by people from the capital is now at its lowest point for five years.
It comes after the Covid pandemic – and the subsequent increase in working from home – sparked a boom in the county’s property prices.
Land Registry figures show the average value of Kent homes increased 20% from £291,909 in February 2020 to £350,090 now. A detached house in the county now costs £588,474 on average.
Experts say this means Londoners are now often being priced out of buying “trophy homes” in Kent – instead, they are having to stay put or look for cheaper options further afield in the UK.
Half of the UK’s 30 million homes increased in value in the past year, with prices rocketing in the north while southern and eastern regions saw more prices deflate than inflate.
A table shows how much each council in Kent expects to make from the higher council tax rates
A Zoopla spokesperson said: “Coastal towns in Kent and East Sussex were least likely to register price gains in 2024, with many towns seeing less than 10% of homes increase in value and more than three-quarters of homes registering small price falls.
“This is due to the fading of the pandemic boom and the subsequent search for additional space as more workers return to the office.
“An additional factor is the increase in second homeowners selling in the face of a doubling in council tax from April, which is impacting pricing across many coastal towns.”
The data – which comes from Zoopla’s own property valuation system – did not include dwellings where the value decreased by less than 1%.
The only coastal town to buck the trend in Kent was Folkestone. Last year it was named by The Sunday Times as the best place to live in the south east and property prices in the town rose on average by £3,500.
Folkestone is the only coastal town in Kent where property prices rose in 2024, according to Zoopla’s research. Picture: Barry Goodwin
Mr Ross-Bason added: “The key to driving interest in today’s market remains sensible and accurate pricing.
“While we’re not seeing the need for dramatic price drops, properties priced correctly from the outset are still attracting strong attention in a buoyant market.”