"Whilst the picture is certainly improving, homebuyers are continuing to contend with far higher mortgage rates than they’ve become accustomed to in recent years and this is restricting the price they can afford to pay at all levels of the property market"
- Tim Simmons - Regency Living
New research has revealed that the high cost of homeownership has caused the property market across some of the nation’s most sought-after coastal locations to slump over the last year.
Regency Living analysed house price performance across 100 of the nation’s most popular seaside hotspots, with the data revealing that, on average, property values have increased by just 1.9% over the last year versus a 4.6% increase across the UK as a whole.
The research shows that even the appeal of the nation’s most sought-after coastal locations has faded against the wider backdrop of market uncertainty and higher mortgage rates, with some of the most popular locations sitting within the top 10 largest house price reductions.
Dorset’s prestigious Sandbanks has seen the largest decline, with the average house price falling by -4.6% over the last year, whilst Perranporth (-3.3%), Dartmouth (-2.1%) and Padstow (-2%) also make the list.
Despite these house price reductions, all four areas are still home to an average house price north of £400,000, with the average house price of £521,785 across Sandbanks coming in 79% above the wider average for Bournemouth, Christchurch and Poole.
In contrast, Orkney’s Kirkwall has seen the largest increase in the average house price over the last year, up 8.1%, with Burntisland (+7.4%), Dawlish (+7%), Porthcawl (+6.8%) and Thurso (+6.7%) making the top 10, joined by Cardigan (+6.7%), Fowey (+5.8%), Girvan (+5.5), Aberystwyth (+4.9%) and Whitby (+4.6%).
Of the top 10 areas to see the highest coastal house price growth over the last year, just three are home to an average house price higher than the current UK benchmark - Dawlish (£275,579), Porthcawl (£308,081) and Fowey (£419,626).
“It’s certainly no coincidence that some of the most popular coastal locations boasting the most over-inflated house prices have also been subject to some of the largest market corrections over the last year," comments Sales & Marketing Director at Regency Living Tim Simmons, "Whilst the picture is certainly improving, homebuyers are continuing to contend with far higher mortgage rates than they’ve become accustomed to in recent years and this is restricting the price they can afford to pay at all levels of the property market,"
He adds, "That’s not to say that we’ve fallen out of love with the seaside, however, there’s certainly been a shift towards the more affordable coastal locations, with just three of the top 10 best-performing home to an average house price above that of the UK benchmark.
"Affordability has always been a key issue across the nation’s most sought-after coastal locations, as high demand to live beside the seaside, coupled with a finite level of stock, has driven property prices up considerably.
"In fact, it’s often the key factor we see amongst silver downsizers looking to move to such areas across the South West, South East and East of England. Whilst they want to enjoy a coastal lifestyle, they simply can’t afford to realise this retirement within the brick-and-mortar market. Instead, a residential park home provides them with an affordable alternative, without having to compromise on their dream location.”
