Despite recent headwinds, coastal and waterfront homes continue to appeal to a wide range of buyers, particularly now that values have recalibrated to more sustainable levels
Foreword
"Life by the waterfront continues to capture the imagination of buyers seeking both lifestyle and long‑term value. From vibrant harbours and world‑class sailing waters to quieter stretches of sand and dramatic coastal scenery, living by the water offers a rare combination of everyday escapism and practical appeal.
Flexible working has widened the pool of buyers able to make this move in recent years, while the simple pleasures of coastal life, including morning swims, coastal walks, fresh seafood and strong local communities, continue to be highly prized.
While the property market has gone through a period of flux, our Savills Research shows that demand for waterfront homes remains resilient, underpinned by domestic buyers who are often upsizing, relocating their main residence or securing a second home by the water. While many purchasers are willing to pay a premium for direct access to the sea, marinas or harbourside living, price performance has become more nuanced, with greater choice emerging. This is reflected in the buyer and seller behaviour that we’re seeing and creates a compelling window of opportunity for those considering a move by the water.
For buyers, waterfront living offers not just a home, but a daily connection to nature and a lifestyle that continues to hold its value through market cycles."
Research view
Buying opportunity along the UK’s coastline
The discretionary nature and higher proportion of second home buyers means coastal markets – and, to a lesser extent, waterfront markets – have faced numerous challenges in recent years. In particular, the increase to the stamp duty surcharge for second homes and the doubling of Council Tax by certain local authorities.
Last year also saw unprecedented levels of uncertainty in the lead-up to November’s Budget, particularly for discretionary markets. These factors, together with an unwinding of pandemic trends, have suppressed prices in coastal and waterfront hotspots. But price falls eased in the final quarter of 2025, suggesting that the market is beginning to bottom out.
Indeed, in recent years, demand for coastal properties was exceptionally strong and prices increased by a quarter between March 2020 and September 2022, leading to no net growth (-0.2%) over an almost six-year period to the end of 2025.
As such, coastal markets in particular present a buying opportunity for those still eager to take advantage of the lifestyle offering these homes provide. And for sellers, this has led to improving demand from a wider range of more committed buyers.
The desirability of waterfront living appeals to a wide variety of buyers
Frances McDonald, Director, Residential Research
London Thames premiums
The Thames historically played a vital role in the growth of London’s economy. Today, it is the lifestyle and uniqueness of waterfront living that has come to define the city’s river. The housing stock available along the Thames varies dramatically and for this reason there is also a diverse range of buyers.
Between Teddington Lock and Putney Bridge in the south west, period property dominates the waterfront market, characterised by large houses, many with gardens stretching right to the riverbank. The riverside market in the east mainly consists of new build schemes in amongst industrial and warehouse conversions. Central markets differ too: period properties were generally built back from the waterfront, while new developments tend to be those that are located right on the edge of the Thames.
Living on London’s riverfront unsurprisingly comes at a price. Along the 27-mile stretch between Teddington Lock and the Royal Docks, buyers are willing to pay 14% more for second-hand flats located within 100 metres of the bank, compared with those up to one kilometre away.
Riverside hotspots along the Thames
Beyond London, premium prices continue to be paid along the Thames. Between Teddington Lock and the outskirts of Oxford, the riverbank is primarily dominated by larger detached homes, often with direct river frontage and private moorings. As a result, these markets tend to be dominated by those buying their main residence, as opposed to second home or investment buyers. Here, second-hand houses within 100 metres of the river cost almost a third more than those one kilometre away.
Hotspots include Cookham, Henley-on-Thames, Marlow, Shiplake, Sonning and Wargrave. Waterfront homes cost in excess of £1.5 million, often double the price of comparable properties further inland.
Other waterfront hotspots across the UK include those within National Parks and National Landscapes, such as the Lake District, where homes within the National Park cost almost double those in surrounding areas. Scotland’s National Scenic Areas, which are home to a number of the country’s lochs and rivers, command an average premium of 130%, highlighting the lure of waterside living north of the border.
Outlook
People have long been drawn to the uniqueness of living on the water, whether that be overlooking a river or along the UK’s popular coastline, and they are still willing to pay a premium for the privilege.
Even so, given the current geopolitical uncertainty, it has never been more important for sellers to price their property realistically in order to create interest. We are seeing some caution from both buyers and sellers and this is likely to continue until the outlook becomes clearer, but activity is still taking place and there have been a number of notable waterfront sales so far in 2026.
While the foundations for a recovery remain in place, lower mortgage rates and an improving economic outlook are key to an improvement in buyer sentiment and, in turn, the return of house price growth. Recent events mean we will be waiting a little longer to see these conditions, increasing the window during which more committed buyers can benefit from the current value on offer.
Throughout the coming months, best-in-class, well-located homes will continue to command a premium, nowhere more so than in the UK’s coastal and waterfront markets.