Sandbanks remains Britain's 'most expensive' seaside town

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Sandbanks in Dorset has been identified as Britain's most expensive seaside town for the second year in a row.

With an average house price of £664,051, the glamorous hotspot popular with celebrities was named as Britain's priciest seaside location in an annual study by Halifax, which also put Sandbanks top in 2016.

Salcombe in Devon, which was the priciest seaside town in 2015, came second on the list in the 2017 report, with an average home there valued at £617,743.

During the last 10 years, the average house price in Britain's seaside towns has increased by 25%, from £181,060 in 2007 to £226,916 in 2017 - equating to an average increase of £382 per month.

Second home buyers are often blamed for helping to push up house prices in many popular seaside towns, making it harder for people who grew up in these locations to get on the housing ladder. In April 2016, a stamp duty hike was imposed on second home buyers.

There is a marked north-south divide in property values in seaside towns, Halifax said, with southern England dominating the list of the most expensive seaside towns.

Outside southern England, the most expensive seaside areas are the Scottish locations of North Berwick, where a typical home is worth £314,435 and St Andrews, where a property is valued at around £300,319. Mumbles in South Wales is also among the most expensive seaside towns outside southern England, with an average house price of £284,804.

Home buyers wanting to be beside the seaside may want to consider focusing their search on Scotland, which has nine out of the 10 least expensive coastal towns.

Port Bannatyne on the Isle of Bute is the least expensive seaside location in the survey, with an average price there of £71,550.

Based on average house prices, a buyer could snap up nine homes in Port Bannatyne for the price of one property in Sandbanks. 

Newbiggin by the Sea in Northumberland follows Port Bannatyne and is the least expensive seaside town in England with an average house price of £75,779.

All the locations on the list of the 10 least expensive seaside towns have average house prices below £100,000.

Martin Ellis, Halifax housing economist, said: "Seaside towns are extremely popular places to live, offering sought-after views and desirable weather. Being by the seaside does come at a price - with the marked increase in house prices reflecting the demand for rooms with a 'sea' view.

"Over the past decade, house prices in the South East, especially coastal towns within commutable distance to London, have shown strong growth and have become Britain's most expensive seaside towns.

"However, the strongest-performing coastal towns in terms of growth have been north of the border in Scotland, where property prices on the Aberdeenshire coastline have been helped by the oil industry more than the sunshine."

Halifax used Land Registry and Registers of Scotland house price data.

 

Here are the most expensive seaside towns, with the average house price in 2017, according to Halifax:

1. Sandbanks, South West, £664,051

2. Salcombe, South West, £617,743

3. Aldeburgh, East Anglia, £526,689

4. Lymington, South East, £441,357

5. Padstow, South West, £422,916

6. Dartmouth, South West, £391,775

7. East Wittering, South East, £384,434

8. Brighton, South East, £374,622

9. Shoreham by Sea, South East, £373,056

10. Bigbury on Sea, South West, £372,105

 

Here are the seaside towns with the biggest house price increases over the last decade, with the current average house price and the percentage increase:

1. Fraserburgh, Scotland, £136,889, 95%

2. Lerwick, Scotland, £160,689, 77%

3. Shoreham by Sea, South East, £373,056, 70%

4. Aldeburgh, East Anglia, £526,689, 67%

5. Inverbervie, Scotland, £201,837, 62%

=6. Whitstable, South East, £347,680, 59%

=6. Brighton, South East, £374,622, 59%

=8. Leigh on Sea, South East, £337,503, 53%

=8. Macduff, Scotland, £130,804, 53%

10. Sandwich, South East, £334,177, 51%

 

And here are the 10 least expensive seaside towns, according to Halifax, with the average house price in 2017:

1. Port Bannatyne, Scotland, £71,550

2. Newbiggin by the Sea, North, £75,779

3. Campbeltown, Scotland, £80,737

4. Girvan, Scotland, £85,082

5. Millport, Scotland, £86,392

6. Saltcoats, Scotland, £87,881

7. Rothesay, Scotland, £90,284

8. Irvine, Scotland, £94,070

9. Wick, Scotland, £94,623

10. Ardrossan, Scotland, £94,823.