Top 10 most expensive coastal locations in the UK

As summer arrives, a yearning to be by the sea may have you wondering where the most popular coastal locations in the UK are to buy a home.

Coastal locations are a popular choice for buy-to-lets, holiday rentals and homeowners looking to downsize their home as they approach retirement. But Chancellor Jeremy Hunt’s Spring Budget clamped down on furnished holiday lets tax (FHL) in a bid to free up property stocks and fund national insurance cuts, which has had an impact on the coastal housing market.

The latest Lloyds Bank research revealed that Salcombe in Devon is the most expensive coastal location in the UK, where the average house price is £970,657.

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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.”

So, if you really do want to be beside the seaside, what can you expect to pay in the most desirable locations? And where should those on the first rungs of the property ladder be looking for coastal living at a fraction of the cost?

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. 

With an average price of £970,657, Salcombe in Devon is the most expensive location for coastal property for the second year in a row. This is actually down by almost a fifth on the average price for the area in 2022, when the average price was £1.2 million.

In second place came Sandbanks in Dorset, which is a popular celebrity neighbourhood (former West Ham football manager Harry Redknapp lives here). The average price tag here is £957,739.

Following Sandbanks is Padstow in Cornwall, where the average house price is £701,979. Cornwall has previously ranked fourth among the best holiday rental locations in the UK. 

We look at the most expensive coastal locations in the UK.

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 there are still coastal areas with affordable properties, 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, Scotland, which will set buyers back around £100,000 on average.”

That’s 30% cheaper than equivalent coastal house prices in 2022.

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.

Compared to a decade ago, house prices in coastal locations have increased by a staggering 48%, with properties in the South East and Wales more than doubling. But some prices have actually come down – according to the data from Lloyds Bank, the average coastal home now costs £293,710 – down 4% from the previous year.

These are the areas that have bucked that downturn trend:

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 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 for overseas travel, including to the most expensive cities in the world, many holidaymakers may find themselves hunting for alternatives, and that’s 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 the price tag properties come with, especially in spots like Devon and Cornwall. If you opt for an emerging area that hasn’t yet peaked, you might be able to snap up a bargain. 
• Research the area you’re considering to make sure it suits your lifestyle, even if it’s just for weekend getaways. The winter months could feel bleak, especially if you’re in an isolated area . 
• If you plan to rent out your property, make sure you add some touches that will attract holidaymakers and add value to your home. Fresh flowers, cosy soft furnishings or even a welcome basket will impress guests.