Coastal home values drop but which area is the most valuable?

Sandbanks in Poole, Dorset, has once again claimed the crown as Britain’s most expensive coastal location

Research by Lloyds reveals the average home in the exclusive Dorset enclave now costs £965,708.

That is a drop of 3% (£33,595) compared with last year – though it still puts Sandbanks firmly at the top of the coastal property league, which is dominated by locations in the South West.

Across Britain, the average price of a home by the sea now stands at £295,991 – down 1% year-on-year.

Despite this recent, small dip, prices in coastal towns are up by 18% over the past five years. In premium locations, it’s an increase of 37% – adding £168,408 to the cost of a typical high-end coastal home. St Mawes in the South West saw the biggest increase over this period, adding £222,602 (+68%) to the price of the typical property.

Brighton saw the highest combined value of coastal home purchases over the last year, with deals totalling just over £927m. This was following by Plymouth (£810m) and Poole (£802m). Overall, the housing market for coastal locations in Great Britain was worth around £21bn last year, according to Lloyds.

Plymouth also saw the largest number of transactions (3,258), followed by Bournemouth (2,195) and Brighton (1,982).

Meanwhile, Scotland dominates the list of most affordable coastal towns, with all 10 of the cheapest spots located north of the border.

Top of the list is Campbeltown, on the scenic Kintyre Peninsula, where the average home costs just £103,078 – down 11% in the past year. Once dubbed the whisky capital of the world, Campbeltown offers dramatic coastal views and access to the islands of Islay, Jura and Arran.

Outside of Scotland, the least expensive location in England is Newbiggin-By-The-Sea in the North East, while in Wales it is Prestatyn.

Amanda Bryden, head of mortgages for Lloyds, said:

“Coastal living continues to hold a special appeal – whether it’s the lure of sea views, sandy beaches, or a slower pace of life. Our latest research shows the most exclusive seaside spots – like Sandbanks – still command premium prices.

“In some of the UK’s most desirable coastal towns, average prices have dipped slightly over the past year. But, over the longer term, values remain significantly higher – especially in the South West, where demand from lifestyle movers continues to shape the market.

“At the other end of the scale, there are still pockets of real affordability – particularly in Scotland, where buyers can find coastal homes for a fraction of the price. For those willing to look beyond the traditional hotspots, there are some hidden gems offering great value and a strong sense of community.

“It’s also important to recognise that not all coastal areas share the same fortunes. Some seaside towns face significant challenges, from seasonal economies to a lack of affordable housing for local people.”

Kindly shared by EstateAgentTODAY Picture courtesy of Adobe