Most expensive coastal location named as prices drop

Home buyers face paying up to £1m for top coastal properties although prices have dropped since 2022, research suggests.

Research by Lloyds Bank has found that Salcombe in Devon has retained its position as the most expensive place in Britain to buy a home by the coast.

Properties in the town now cost £970,657 on average, down 22% compared with two years ago.

Affluent Sandbanks, home to celebrity residents including Harry Redknapp, is just behind in second place, with an average price tag of £957,739. 

Meanwhile, Padstow in Cornwall, with its renowned Seafood Restaurant by Rick Stein, is third, with homes costing £701,979 on average.

The latest data shows Lyme Regis in Dorset and St Ives in Cornwall entering the top 10 most expensive coastal locations, with average property prices of more than £500,000 in both areas.

The average coastal home is now £293,710, 4% lower than in 2022 but 48% higher than ten years ago, Lloyds Bank said.

There are still some affordable coastal areas though, mainly in Scotland.

Coastal property prices are the cheapest in Rothesay, on the Isle of Bute, where homes cost £101,477 on average, 30% cheaper than in 2022.

Amanda Bryden, head of mortgages, 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. 

“These pricier areas can result in a lack of affordable homes for first-time buyers, a problem often exacerbated by high levels of second home ownership, meaning that many who have grown up in the area may find themselves priced out of owning their own home locally.”

“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, which will set buyers back around £100,000 on average.

“It’s also important to remember that in some coastal areas around Britain, the idyllic image of a seaside resort doesn't apply. Indeed there are specific socio-economic factors, often as a result of changing tourism habits, or the decline of other local industries, which can lead to higher levels of deprivation.”