Home buyers who dream of living in a country cottage now have the chance to snap one up at a bargain price.
New data from the property website Zoopla has found that demand for cottages both in the countryside and by the coast has dropped by a third since its peak in 2023.
It means the price of cottages in sought-after locations such as North Devon, the Cotswolds and Dorset has become more affordable.
In 2024, the word cottage was the fourth most searched for word on Zoopla’s website search tool amid the rise of the ‘cottagecore’ social media trend, which saw cottage life idealised after the Covid-19 pandemic.
Now, however, as mortgage rates have gone up and the reality of second homes taxes in some locations bites, the popularity of cottages has dwindled, posing canny buyers a good opportunity.
In some sought-after locations prices have dropped by 6 per cent or more, equating to tens of thousands of pounds.
Richard Donnell, head of research at Zoopla, said: ‘If you’re a buyer searching for a cottage in Wales, Cornwall or the Lake District, the balance of power has shifted your way.
‘Competition has eased and it’s more of a buyer’s market.’
Buyer opportunity: Zoopla found that demand for coastal and countryside cottages has dropped by a third since 2023
Buyers should target popular hotspots
Zoopla said sales of cottages dropped by 13 per cent year-on-year in the first half of 2026, meaning that buyers are in a strong bargaining position.
The average asking price of a cottage across Britain is £321,641, down 0.3 per cent compared to August 2025. Across the broader housing market prices have risen by 1.4 per cent.
Some of the locations which have seen the largest drop in listing prices for cottages are also some of the best-known.
In 18 of 24 second-home hotspots analysed by Zoopla, including North Devon and the Cotswolds, average cottage values dropped faster than standard homes in the same postcodes.
North Devon saw the sharpest fall, with average cottage values down 6.1 per cent year-on-year, from £350,494 to £329,118.
Across Ceredigion in Wales, average cottage values have fallen by 6 per cent year-on-year, from £273,151 to £256,761.
On the Isle of Wight, average cottage values have dropped by 5.1 per cent year-on-year, from £367,763 to £349,004.
The Cotswolds is well known for attracting wealthy celebrities, but slightly more affordable options still exist for buyers. According to Zoopla, the average value of cottages in the Cotswolds has fallen by 4.2 per cent year-on-year, from £444,192 to £425,474.
| Local Authority | Cottage Value Now (£) | Cottage Value 1Yr Ago (£) | Cottage Value Change (YoY) |
|---|---|---|---|
| North Devon | £329,118 | £350,494 | -6.10% |
| Ceredigion | £256,761 | £273,151 | -6.00% |
| East Lindsey | £259,479 | £275,138 | -5.70% |
| Isle of Wight | £349,004 | £367,763 | -5.10% |
| Cotswold | £425,474 | £444,192 | -4.20% |
| East Devon | £360,109 | £374,772 | -3.90% |
| South Lakeland | £298,434 | £310,213 | -3.80% |
| Dorset | £348,213 | £360,255 | -3.30% |
| Torbay | £246,711 | £254,850 | -3.20% |
| East Suffolk | £324,610 | £331,354 | -2.00% |
| UK | £321,641 | £322,675 | -0.30% |
Torbay is a more affordable option for buyers. In Torbay, average cottage values have slipped by 3.2 per cent year-on-year, from £254,850 to £246,711.
In Cornwall, the largest single market for cottages and second homes, cottage values have fallen by 1.3 per cent year-on-year, from £302,203 to £298,182.
Donnell said: ‘Cottages in picturesque rural or coastal areas have commanded strong buyer interest in recent years, but the market reality has now shifted.’
He added: ‘If you’re selling in one of these areas, price against today’s market, not three years ago — that’s what separates a speedy sale from a listing that sits on the market for six months.’
Estate agent Jeremy Leaf told This is Money: ‘The change in second home taxes, such as increased council tax, has led many second homeowners to sell up.
‘This is providing an opportunity for first-time buyers looking for more modest-sized, cheaper homes, particularly in those areas such as Devon and Cornwall which have proved so popular with second home owners.’
Watch out for second home taxes
If you buy a cottage as a holiday home, you will usually have to pay council tax on the additional property you own or rent out.
In some cases you can also be charged up to two times your normal council tax. This is sometimes known as the second homes premium. It does not apply in all locations.
Under the rules, councils must vote on whether to charge additional council tax on second homes and then give one year’s notice, such as by having the decision published in the local newspaper, before implementing the increase.
Among others, East Devon District Council and North Norfolk District Council have implemented the council tax hike for second homes.
In April 2023, the maximum level at which local authorities in Wales could set council tax premiums on second homes and long-term empty properties rose to 300 per cent.
Additional stamp duty costs might need to be factored in if you are buying a cottage as a holiday home.
If you already own one property and are buying another, the stamp duty threshold is lower. If the second property is worth more than £40,000, you will have to pay stamp duty for second homes.
You would also pay a higher percentage of stamp duty when buying an additional property. This is known as the stamp duty surcharge. In England, Wales and Northern Ireland, this is set at a minimum of 5 per cent.
If you are buying an older cottage, the cost of maintaining or renovating it could be expensive. Some cottages are listed buildings, making it harder to make improvements or complete extensions.
In old cottages, draughts might be a problem, as could damp and cracks in the walls. Thatched roofs are expensive to maintain or replace. Energy efficiency is not always good in older cottages, meaning bills can be expensive, and if you wanted to improve a cottage’s energy efficiency additional costs and planning rules would need to be considered.
Be vigilant when viewing a cottage and get a survey before buying.
Two cottages for sale now
1. Two-bed cottage, Winchcombe, £350,000
This two-bed cottage in Winchcombe in the Cotswolds is on sale for £350,000 via De Mel Property. It is Grade II-listed and located in the centre of the Gloucestershire town.
Inside, there are exposed beams and a brick fireplace with a log-burning stove.
The property has been extended at the back to create a modern kitchen and dining space. Outside, the property has a low-maintenance paved garden.
Affordable: This two-bed cottage in the Cotswolds is listed for £350,000 via de Mel – Winchcombe
Clean lines: The property has been modernised while maintaining period features
Extension: A large kitchen and dining room has been added to the back of the cottage
2. Two-bed cottage, Powys, £290,000
This two-bed semi-detached cottage in Powys, Wales, is on sale via McCartneys for £290,000. It is located in the village of Talybont-on-Usk.
The property has exposed beams, timber flooring and sash windows. The main garden is at the front but there is a summer house at the back.
The cottage is accessed via a shared pathway past the neighbouring property.
Charming: This cottage in Powys is on sale via McCartneys for £290,000
Features: The cottage has wooden beams and timber flooring inside
Handy: There is a shower in one of the two bedrooms at the cottage