House prices surging in these areas despite stagnation hitting rest of UK market | Personal Finance | Finance

House prices in Britain’s hottest coastal housing markets have grown by 4.2 percent in a year, bucking the stagnation seen across the UK.

A survey of 100 coastal hot spots from Salcombe in Devon to Lossiemouth in Scotland found people who want to live beside the sea are willing to pay a premium.

Many of the buyers are older people escaping to the seaside, according to over-50’s property specialists, Quickmove Properties.

Its research found that some 92 out of the coastal property locations have seen price rises in the past year, while other areas across the country have stagnated or seen falls.

The five largest coastal price booms have all been recorded in Scotland, led by 19 percent in Lossiemouth and followed by Burntisland (17.9 percent), Irvine (16.2 percent), Ayr (14 percent), and Cockenzie (13.1 percent).

Two more coastal markets have achieved double digit growth this year with prices in Wales’ with Portmeirion growing by 11.7 percent, and prices in Newquay, Cornwall, growing by 10 percent.

Quickmove said: “Such is the popularity of seaside living, especially with retirees, that homes in coastal locations tend to command a hefty price tag compared to the national market as well as the coast’s wider local market.

“When it comes to the most prestigious coastal property market price premiums, the highest is found in Salcombe, Devon. With an average house price of £809,310, property prices in Salcombe are 104 percent higher than the average price for the wider South Hams local authority district.”

The study found that Southwold in Suffolk has an average price of £532,673, meaning the coastal town commands a premium of 83.6 percent compared to the surrounding East Suffolk local authority area.

Dorset’s Sandbanks has an average price of £603,532. This marks a premium of 81.2 percent compared to the wider average for Bournemouth, Christchurch & Poole.

Other coastal locations to rank within the top 10 for the highest house price premiums include Aldeburgh (77.4 percent), Padstow (66.9 percent), Porthcawl (40.9 percent), Fowey (40.6 percent), Seahouses (40.2 percent), North Berwick (37.2 percent) and Budleigh Salterton (36.9 percent).

Sales Director at Quickmove Properties, Mark O’Dwyer, said: “The Great British coast has enticed homebuyers for centuries. From Scotland’s wild shores to the calm sands of Cornwall, so many of us crave to live by the sea.

“Such is the pull of coastal living that many local house prices stand stoic like a lighthouse in a storm against broader negative trends in the national market.

“But because of this, the cost of buying bricks and mortar on the coast tends to be high and thus inaccessible to far too many people.

“That’s why we’re seeing such a surge in appetite for downsizing to coastal park homes.

“For a fraction of the price, you can buy yourself a beautiful modern park home in a prime seaside location and still have plenty of cash left over from selling your old home to enjoy everything that coastal living has to offer.”

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