Seaside house prices up £500 every month since 2004

Salcombe Photo: ChrisWegg

The bank's annual beach-themed report reveals that the desirable location of coastal homes has driven up their values steadily across the last decade. Nonetheless, they remain some of the cheapest locations to live compared to the of the country.

Indeed, the average house price in seaside towns has climbed by 42 per cent since 2004 to £196,826, equivalent to an increase of close to £500 per month.

The ten most expensive seaside towns are all in the south, with eight in the South West. Salcombe in Devon (£615,344), which is in an area of outstanding natural beauty and Sandbanks in Dorset (£574,089) are the top two most expensive sea side towns to buy in.

Five seaside towns in Scotland have recorded at least a doubling in house prices since 2004, with all five towns on the Aberdeenshire Coast. Fraserburgh has experienced the biggest rise with a 141 per cent increase from an average price of £53,641 in 2004 to £129,325 in 2014. Cove Bay (119 per cent), Peterhead (118 per cent), Inverbervie (114 per cent) and Stonehaven (101 per cent) have seen the next biggest gains.

With the average house price in a seaside town now standing at £196,826, though, buying beside the seaside is still cheaper than compared to the average house price across Great Britain (£239,518).

Craig McKinlay, Mortgage Director, Halifax, said: "Seaside towns provide a unique lifestyle opportunity and remain popular places for people to live, while also attracting those looking for second homes or holiday properties which can place additional upward pressure on house prices.

“For once, oil and water have mixed - with Aberdeenshire at the heart of Scotland’s vigorous energy industry, it’s little wonder that seaside houses have increased so substantially."

Finding a bargain is likely to be easier the further north you go, notes the lender, where average prices for the top 10 least expensive seaside towns are all below £95,000.

McKinlay adds: "Living near the seaside remains an achievable dream for many. Even in the places experiencing the biggest house prices rises in the past ten years, four are still substantially below the UK average. Places like Workington in the North, and Montrose, Peterhead and Fraserburgh in Scotland have experienced exceptional growth but on average houses cost below £150,000."