House prices in some of Britain’s most sought-after coastal locations have fallen sharply over the last year but buyers are still paying substantial premiums for a home by the sea.
Research from Yopa found that property values in several seaside hotspots have cooled following the post-pandemic boom, with prices falling by as much as 38% in some locations.
However, many coastal towns continue to command premiums of more than 50% compared with their wider local property markets.
Seahouses in Northumberland recorded the largest annual decline, with average house prices down 38% year-on-year. Portmeirion in Wales saw values fall by 20.2%, while Fowey in Cornwall experienced an 18.3% drop.
COASTAL LIVING
Other notable declines were recorded in North Berwick (-13.8%), Lossiemouth (-11.8%), Watchet (-10.7%) and Aldeburgh (-10.6%).
Despite these corrections, demand for coastal living remains evident in many of the UK’s most desirable seaside destinations.
Sandbanks in Dorset continues to command the largest premium, with an average property price of £682,598 – 75.6% higher than the wider Bournemouth, Christchurch and Poole average. Padstow ranks second, with a premium of 70%, followed by Salcombe at 68.1%.
Perranporth, Southwold, Kirkcudbright, Helensburgh and Porthcawl also command premiums of around 50% or more compared with their surrounding local authority areas.
The research also highlights locations where coastal living can still be secured at a discount. Thurso in the Scottish Highlands was found to be the most affordable relative to its wider market, with house prices 38.1% below the Highland average. Scarborough, Lossiemouth, Millport, Campbeltown and Weston-super-Mare also offer significant discounts.
NO SURPRISE
Verona Frankish (main picture, inset), CEO at Yopa, says: “Many of Britain’s coastal hotspots enjoyed exceptional levels of house price growth during the pandemic, as buyers prioritised lifestyle and location whilst taking advantage of greater flexibility around where they lived and worked.
“As the market has normalised, it’s no surprise that some of these premium locations have seen house prices cool.
“However, what this research demonstrates is that demand for coastal living remains remarkably resilient and, even where we’ve seen price corrections, many of the nation’s most desirable seaside locations continue to command a significant premium over their surrounding market.”
