As summer arrives, you may be wondering where the most popular coastal locations in the UK to buy a seaside home are.
Coastal locations are a popular choice for buy-to-lets, holiday rentals and homeowners looking to move up the property ladder or downsize their home.
But Chancellor Jeremy Hunt’s Spring Budget clamped down on furnished holiday lets tax (FHL) to free up property stocks and fund national insurance cuts, which has had an impact on seaside spots.
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The latest Lloyds Bank research dived deep into Britain’s seaside hotspots. It revealed that Salcombe in Devon is the most expensive coastal location in the UK, where the average house price is £970,657.
Amanda Bryden, head of mortgages at Lloyds Bank said: “Sea views, sandy beaches, brisk morning dips – it’s easy to see why coastal living is so desirable. Our data shows the most sought-after coastal locations in the country can attract average price tags of close to a million pounds, with in-demand properties often going for much more.”
But what’s the price you pay if you want to live next to the sea? And where are the most affordable places of them all?
Top 10 most expensive coastal locations in the UK
The data by Lloyds Bank was compiled by tracking the house price movements of about 198 coastal locations in the UK.
It found that the most expensive coastal locations in the UK were in the South West region.
Salcombe in Devon is the most expensive coastal property location in the UK for the second year in a row. It costs £970,657 on average, which is – at least – almost one-fifth lower than its 2022 price (over £1.2million).
In second place came Sandbanks, which is a popular celebrity neighbourhood (former West Ham football manager Harry Redknapp lives here). The average price tag in this location is £957,739.
Following it is Padstow in Cornwall, where homes cost £701,979 on average. Cornwall is already a popular hotspot for holidaymakers and has previously ranked fourth among the best holiday rental locations in the UK.
We look at the most expensive coastal locations in the UK.
| Coastal location | Average house price 2023 |
|---|---|
| Salcombe | £970,657 |
| Sandbanks | £957,739 |
| Padstow | £701,979 |
| Lymington | £648,881 |
| Dartmouth | £569,850 |
| Wadebridge | £537,337 |
| Lyme Regis | £533,526 |
| St. Ives | £528,181 |
| Budleigh Salterton | £508,139 |
| Kingsbridge | £503,525 |
Source: Land Registry House Price Data (12 months to December 2023)
Top 10 most affordable coastal locations in the UK
First-time homebuyers will be pleased to know that while they most likely won’t be able to afford to buy in the South West, there are still coastal areas with properties they can buy, with the most affordable places being in Scotland.
Bryden said, “There are more affordable places to call home by the sea, especially the further north you head. Those with a more adventurous streak may want to consider setting up home in Rothesay on the charming Isle of Bute, which will set buyers back around £100,000 on average.”
This is 30% cheaper than coastal house prices in 2022.
| Coastal location | Average house price 2023 |
|---|---|
| Rothesay | £101,477 |
| Greenock | £107,111 |
| Girvan | £107,349 |
| Millport | £113,622 |
| Saltcoats | £115,372 |
| Campbeltown | £115,813 |
| Ardrossan | £119,166 |
| Port Bannatyne | £119,951 |
| Stranraer | £120,157 |
| Fraserburgh | £129,606 |
Source: Land Registry House Price Data (12 months to December 2023)
Should you buy a coastal home?
For those looking to invest in property, buying a seaside home may be a worthwhile option.
According to the data by Lloyds Bank, the average coastal home now costs £293,710 – down 4% from the previous year. However, compared to a decade ago, house prices in coastal locations have bumped up by a staggering 48%, with properties in South East and Wales more than doubling.
| Coastal location | Region | Average house price 2022 | Average house price 2023 | 1-year change |
|---|---|---|---|---|
| Invergordon | Scotland | £114,962 | £154,293 | +34% |
| Menai Bridge | Wales | £297,551 | £379,472 | +28% |
| Burntisland | Scotland | £175,222 | £207,525 | +18% |
| Newbiggin-By-The-Sea | North East | £116,963 | £136,717 | +17% |
| Helensburgh | Scotland | £219,574 | £254,261 | +16% |
| St. Ives | South West | £466,659 | £528,181 | +13% |
| Swanage | South West | £441,682 | £493,745 | +12% |
| Sheringham | East of England | £337,593 | £372,476 | +10% |
| Wick | Scotland | £124,857 | £137,424 | +10% |
| Greenock | Scotland | £97,608 | £107,111 | +10% |
| All coastal locations | UK | £306,491 | £293,710 | -4% |
Source: Land Registry (E&W) and ROS (Scotland) - house price data 12 months to December 2022 and 2023
But with falling mortgage rates, lower inflation, buying becoming cheaper than renting again and hopes that the Bank of England will cut interest rates, climbing up the property ladder may become a bit easier.
On top of that, with flight prices skyrocketing to visit the most expensive cities in the world, like London, many holidaymakers may find themselves hunting for alternatives. This is where coastal locations in the UK hit the jackpot.
However, there are a few things to consider when choosing a coastal location.
- The closer you live to the sea, the higher price tag properties come with – especially in spots like Devon and Cornwall. But if you opt for an emerging area that hasn’t yet peaked, you can snap up a bargain that could increase your property value in the coming years.
- It’s also a good idea to research the neighbourhood you’re eyeing up to make sure it suits your lifestyle, even if it’s just for weekend getaways. If it’s quite an isolated area, remember to visit during winter or bleaker periods because they can feel (or actually be) cut off.
- If you plan to rent out your property, make sure you give it small touches that will attract holidaymakers and add value to your home.
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