Coastal house prices plunge by up to 38%

House prices in some of Britain’s best-known seaside locations have fallen by as much as 38% in a year, research reveals.

Seahouses in Northumberland recorded the largest annual house price drop among the locations analysed by Yopa, with its average property value dropping by 38%.

Prices in Portmeirion, Wales, declined by 20.2%, while Fowey in Cornwall saw an 18.3% fall.

However, homes with a sea view still come at a price, with buyers paying premiums of up to 76% in the most sought-after coastal markets.

Coastal property hotspots

The firm’s chief executive, Verona Frankish, said: “Many of Britain’s coastal hotspots enjoyed exceptional levels of house price growth during the pandemic, as buyers prioritised lifestyle and location whilst taking advantage of greater flexibility around where they lived and worked.

“As the market has normalised, it’s no surprise that some of these premium locations have seen house prices cool.”

She added: “However, what this research demonstrates is that demand for coastal living remains remarkably resilient and, even where we’ve seen price corrections, many of the nation’s most desirable seaside locations continue to command a significant premium over their surrounding market.”

Where prices fell

The data shows that North Berwick in East Lothian recorded a reduction of 13.8%, followed by Lossiemouth in Moray at 11.8% and Watchet in Somerset at 10.7%.

Aldeburgh in Suffolk also experienced a double-digit decline, with its average house price falling by 10.6% over the year.

Yopa says that substantial price premiums remain in several coastal destinations when their values are compared with those across the surrounding local authority.

Sandbanks in Dorset had the largest premium and its average house price of £682,598 was 75.6% above the average for Bournemouth, Christchurch and Poole.

Value priced homes

Buyers in Padstow, Cornwall, paid 70% more than the wider local authority average, while Salcombe in Devon commanded a premium of 68.1%.

Perranporth in Cornwall was 55.4% more expensive than its surrounding market and Southwold in Suffolk recorded a premium of 51.6%.

That’s just ahead of Kirkcudbright in Dumfries and Galloway at 51.5%.

Homes in Helensburgh, Argyll and Bute, cost 50.7% more than the local authority average, while Porthcawl in South Wales carried a 50% premium.

Affordable seaside hotspots

Not every coastal location was more expensive than its surrounding area.

Thurso in the Scottish Highlands was the most affordable seaside hotspot on this measure, with its average house price sitting 38.1% below the wider Highland average.

Scarborough’s house prices were 34.8% below the North Yorkshire average, while Lossiemouth homes cost 31.3% less than the average across Moray.

Millport in North Ayrshire recorded a discount of 30.6%. Campbeltown in Argyll and Bute was 29.6% cheaper than its surrounding market, followed by Weston-super-Mare in Somerset at 27.5% below the local authority average.