After hitting record highs over the summer of 2022, house prices have been slowing down ever since.
Pent up demand from the Covid-19 pandemic and a temporary stamp duty holiday caused prices to soar in 2021, with the momentum carrying through to last year. But with soaring inflation and rising interest rates - particularly in the wake of Liz Truss’s mini budget in September 2022 - the cost of living crisis has dampened the housing market.
The extent to which prices have come down varies from expert to expert. Nationwide has reported that March 2023 saw the biggest annual decline in house prices since 2009. Meanwhile, Zoopla has a more positive outlook, recording annual growth of 4.1% as of February 2023. Official statistics show that prices have been steadily decreasing.
But there is one market in Great Britain that is showing little sign of slowing down. According to Halifax’s latest annual Seaside Homes Review, which is based on analysis of Land Registry data, property values in towns and villages along the British coastline rose 4% (almost £12,000) to an average price of £304,460 over the 12 months to December 2022.
Several locations saw annual increases that were significantly above the average. For example, Campbeltown on the West coast of Scotland saw the typical price jump £38,000 (42%) to £129,000.
Halifax also found huge variations depending on where in the country the properties were located. Scotland is home to nine out of the cheapest 10 coastal locations, while the South West dominates the top 10 most expensive seaside communities with seven entrants.
Commenting on the findings, Halifax’s director of mortgages Kim Kinnaird said: “For many, owning a home by the sea is an aspiration, with coastal living offering beach walks, clean air and other health benefits. But this comes at a price in many locations.
“When we delve deeper into the cost of Britain’s seaside homes, it’s clear that there is a broad spectrum in house prices. Whilst million-pound properties are abundant in the South West of England, in contrast, homes in Greenock in Scotland are valued on average at less than £100,000.”
Ms Kinnaird said second home ownership has “undoubtedly” driven up prices in Britain’s most sought after coastal settlements. But she added that the coastline of Great Britain is also home to many of the towns “most in need of investment”.
So, where are the most expensive seaside locations? Read below to find out.
The extent to which prices have come down varies from expert to expert. Nationwide has reported that March 2023 saw the biggest annual decline in house prices since 2009. Meanwhile, Zoopla has a more positive outlook, recording annual growth of 4.1% as of February 2023. Official statistics show that prices have been steadily decreasing.
5. Lymington, Hampshire
Located between the New Forest and the Solent, Lymington is the most expensive coastal location in the South East region with an average property going for £663,000. (image: Adobe)
6. Yarmouth, Isle of Wight
Sitting opposite Lymington, Yarmouth saw the biggest yearly average house price growth of any seaside community with prices rocketing 53% (£210,000) to £612,000. (image: Adobe)
7. Dartmouth, Devon
A typical home in the picturesque naval town will set you back almost £568,000 - more than five-times the average price of the cheapest British location, Greenock. (image: Adobe)
8. Kingsbridge, Devon
Just four miles north of Salcombe, Kingsbridge is a much cheaper location with the average property weighing in at half the price of its near-neighbour - albeit at a still-hefty £557,000. (image: Adobe)