Demand for Coastal Living Remains Remarkably Resilient
Coastal house prices fall by as much as 38%, but seaside hotspots still command premiums of up to 76%
The latest research by Yopa has revealed that house prices across some of the nation’s most popular seaside hotspots have fallen by as much as -38% over the last year. However, many continue to command substantial premiums, with buyers paying as much as 76% more than the wider local authority average in order to secure a home by the sea.
Yopa analysed current house prices across popular coastal postcodes, how they have changed over the last year, and how they compare to average property values across the wider local authority area in which they are located.
The research shows that whilst a number of coastal hotspots have seen house prices cool over the last year, many remain highly desirable locations and continue to command significant premiums versus their surrounding market.
Coastal house prices cool
Seahouses in Northumberland has seen the largest annual decline in house prices of all the coastal hotspots analysed by Yopa, with the average property value falling by -38.0% over the last year.
Portmeirion, Wales, ranks second, where house prices have declined by -20.2%, whilst Fowey in Cornwall has seen values fall by -18.3%.
North Berwick in East Lothian (-13.8%), Lossiemouth in Moray (-11.8%), Watchet in Somerset (-10.7%), and Aldeburgh in Suffolk (-10.6%) have also seen notable reductions over the last year.
The coastal hotspots commanding the biggest premium
Sandbanks in Dorset tops the table, where the average property price currently sits at £682,598, some 75.6% higher than the wider Bournemouth, Christchurch and Poole average.
Padstow in Cornwall ranks second, commanding a premium of 70.0%, whilst Salcombe in Devon sits third at 68.1%.
Perranporth in Cornwall (55.4%), Southwold in Suffolk (51.6%), Kirkcudbright in Dumfries and Galloway (51.5%), Helensburgh in Argyll and Bute (50.7%), and Porthcawl in South Wales (50.0%) also command premiums of around 50% or more when compared to their surrounding local authority market.
Where buyers can still find value
Thurso in the Scottish Highlands ranks as the most affordable coastal hotspot when compared to its surrounding market, with the average house price sitting -38.1% below the wider Highland average.
Scarborough in North Yorkshire also offers considerable value, with house prices -34.8% below the wider North Yorkshire average, whilst Lossiemouth in Moray comes in -31.3% below the wider local authority average.
Millport in North Ayrshire (-30.6%), Campbeltown in Argyll and Bute (-29.6%), and Weston-super-Mare in Somerset (-27.5%) also offer buyers the opportunity to secure a coastal home at a discount versus the wider local authority market.
Verona Frankish, Chief Executive Officer at Yopa, commented:
“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.”
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