Oh! We do like to be beside the seaside according to the latest research from Jackson-Stops. The national estate agent has analysed the latest Zoopla data to rank the top UK coastal towns based on capital growth, current average prices and price premiums over the last five years.
According to the data, more than nine in ten coastal towns saw prices rise by between 11% and 55% over the last five years, while more than half (51%) of those analysed have outperformed the county in which they reside in terms of property prices between 2013 and 2018.
South West markets have wind in their sails
Out of the 20 towns which currently command a premium compared to the county it sits in, Salcombe takes the top spot, with prices here standing at least 110% higher than those in Devon over the last 10-years. With Zoopla’s data showing prices rose in the town to £787,628 in 2018, properties now achieve a premium of 171% compared to the average price of a home in the county of Devon.
The popular resort town of Salcombe is also the most expensive coastal town analysed. Property prices in this Devonshire town increased by 27% over the previous five years and by almost 60% from just under £500,000 in 2008. Interestingly, seven of the top ten most expensive coastal towns are located in the South West, including Padstow, Dartmouth and Lyme Regis making this the highest-priced region of those analysed.
The price premium of a coastal town
More than half (51%) of coastal towns analysed have outperformed the county in which they reside in terms of property prices in the last five years. Homes in Aldeburgh in Suffolk (86%) and Padstow in Cornwall (80%) currently achieve a significant premium compared to the counties in which they reside. Aldeburgh is also the second most expensive town of those analysed, with average house prices in this sought-after UK seaside location increasing by 18% to £514,552 over the five years to 2018. According to Jackson-Stops’ Ipswich branch, properties on this seafront can also command a significant premium of 25+%.
Out of those towns that did not conduct a premium over their counties, the towns of Filey and Scarborough in North Yorkshire and Ilfracombe in Devon saw prices underperform in 2018 by at least 34% when compared to house prices across their respective counties. Despite its reputation as the culinary and cultural hub of North Devon, with many of its visitors referring to it as the next St. Ives, property prices in Ilfracombe stand at just £190,074, while average prices across Devon are more than £100,000 higher. With the West Country known for its high property prices, Ilfracombe bucks the trend, making it the ideal spot for those looking for the quintessential seaside experience on a budget.
Least expensive coastal towns
The two Lancashire coastal hotspots of Blackpool (£120,254) and Morecambe (£144,256) are the least expensive areas in which to buy a home, despite them experiencing 18% and 15% price increases over the last five years respectively. Homes in Blackpool are £667,374 less than properties in the most expensive coastal town of Salcombe, yet still benefit from the waterside experience, making them good value for money for those buyers simply looking to reside by the seaside without a preference on location.
The four towns which experienced house price growth of less than 10% since 2013 includes Ilfracombe in Devon. Here prices have remained flat at around £190,000 over the five-year period, following a 7% price dip between 2008 and 2013. Aberystwyth (2%) in Ceredigion, Whitby (7%) in North Yorkshire and Porthmadog (8%) in Gwynedd also achieved small price increases during this time.
The three Kentish coastal areas of Margate, Whitstable and Broadstairs saw the largest capital growth of all UK towns analysed.
Savvy buyers who purchased a home in Margate, the town known for its sandy beach and vintage rides, may have seen their home increase in value by as much as 55%, with Zoopla reporting average prices of £233,345 in 2018 compared to £150,132 in 2013. Whitstable and Broadstairs also experienced significant five-year price growths of 48% and 47% respectively (See table 4 for the top 10 ranking).
Nick Leeming, Chairman of Jackson-Stops said, “The UK’s desire to live by the coast continues to grow and is reflected by the house price growth in all but one of the towns we analysed.
According to Zoopla’s data, a property by the coast costs on average £301,855, which is £75,066 more than the average UK home. Sailing, surfing, taking in the fresh sea air and enjoying fish and chips or an ice-cream along the promenade are all much-loved British past times for families, young people and downsizers alike. Therefore, it should come as no surprise that demand is pushing up prices, and locations such as Salcombe in Devon and Aldeburgh in Suffolk are achieving premiums of between 86% and 170% compared to the counties in which they reside. The lifestyle benefits associated with living by the seaside come with a significant price tag, yet many are still prepared to pay it.”
Laura Howard, Zoopla spokesperson said, “There is a huge variety of price points and locations for house hunters to consider across the coastal homes market. With nearly 8,000 miles of coastline in the UK, those looking for a home by the sea have plenty of choice. Therefore, buyers who are set on this type of property should look to agents who are true specialists in this part of the market to aid their search.
“Those looking for a home with potential for strong capital growth may want to consider the East and South East markets, with towns in Kent, Essex and East Sussex taking the top spots in our ranking of the towns that experienced the greatest capital growth. While many buyers will have long been priced out of some coastal towns, especially those in Devon, Suffolk and Cornwall it is encouraging to see that affordable options remain.
“Lancashire’s Blackpool and Morecambe for example, both register average house prices of just £120,254 and £144,256 respectively. Those looking for a coastal home without a hefty price tag should speak to agents in this part of the country.
“Those with an ambition to own a coastal home may benefit from acting sooner rather than later. Average property prices in more than half of all coastal towns we analysed with Jackson-Stops have outpaced those in their native county over the last five years, while most notable coastal hotspots such as Margate in Kent, have seen price rises of up to 55% over the same timeframe.”