Holiday homes in Sandbanks rise 26% in the last year is the most expensive seaside town as prices rise over a decade.
The latest research from the Halifax shows Sandbanks in Poole is Britain’s most expensive seaside town for the fourth year running with average prices rising 26% in the last year.
Average house prices in sought-after seaside town of Sandbanks are up £161,944 in the last year to £785,426 and out of reach of virtually all first time buyers.
In second place is the seaside town is Aldeburgh which is the only seaside town in the top 10 to have seen a fall of -£22,773 in house prices over the last year to £526,064 followed by Lymington with average price of £502,253.
For older homeowners there is significantly higher activity with equity release buyers in London accessing cash in their property with a lifetime mortgage to buying a dream home in retirement in a seaside town.
Most expensive towns in South West
Over the past decade demand for seaside towns has seen house prices rise by an average of 29% from £185,428 in 2009 to £239,138 to March 2019, equivalent to £5,000 a year.
For home movers wanting to trade up to a seaside town when prices are rising, they may find their next property is more expensive which means they need a larger deposit or mortgage.
The following table from Halifax shows the most expensive top ten seaside towns with average house prices to March 2019.
| Seaside town | Region | House prices |
|---|---|---|
| Sandbanks | South West | £785,426 |
| Alderburgh | East Anglia | £526,064 |
| Lymington | South East | £502,253 |
| Padstow | South West | £482,015 |
| Dartmouth | South West | £449,685 |
| Wadebridge | South West | £421,800 |
| Lyme Regis | South West | £419,106 |
| Budleigh Salterton | South West | £414,705 |
| Brighton | South East | £395,144 |
| Bigbury on Sea | South West | £385,243 |
In the last ten years the biggest rise has been for Wadebridge rising 56% or £151,157 and average prices now £421,800.
The largest rise in property value has been for Lymington increasing £162,218 or 48% from £340,035 in 2009 to £502,253 in March 2019.
If you are retired and your home is valued below the seaside town house prices, you can use equity release to make up the difference and with provider fixed interest rates under 3.0% you pay as you go or roll-up the interest over time.
Remortgage buyers living in these seaside towns and benefiting from higher property values give them an opportunity to release capital which they can use to improve their home such as adding an extension or new kitchen.
Russell Galley Halifax Managing Director said, seaside towns are highly popular places to live, offering sought-after scenery, lifestyle and good weather.
Being by the sea side does come at a price, with the overall marked increase in house prices, reflecting the demand for rooms with a sea view, says Mr Galley.
South East towns remain most popular
The majority of the top twenty seaside towns with the biggest house price growth over the past 10 years are along the South East coast and if you are relocating and buying a new property here, you may need to use equity release to fund the purchase.
In the last decade average house prices in Southend on Sea have risen by 73% from £180,089 to £311,718 or a rise by value of £131,629 followed by Shoreham by Sea with a house price rise of 69%.
If you use equity release to relocate to the seaside and intend to repay the lifetime mortgage in the future, the types of plan structures to consider are importance in order to minimise the early redemption charges.
Retired homeowners with a lifetime mortgage are not required to make any interest repayments and many be concerned about leaving equity for beneficiaries on second death.
Find out the cost of equity release to buy a seaside home with interest rolling up and the benefit of rising house prices using this link:
Free equity release calculator with instant figures when buying a house in a seaside town.
The seaside town in the top twenty outside the South East is Lewick in the Shetlands where house price growth over 10 years has been 62%, Wadebridge rising 56%, Brancaster up 49% and Aldeburgh higher by 46%.
For buy-to-let landlords the higher prices in seaside towns means if they want to buy they would need a larger deposit to reduce the mortgage or higher rental income to cover the interest payments.
Russell Galley said, the South East coast continues to be home to the most expensive seaside towns in the country, while many of the least expensive are in the north, particularly in Scotland.
Despite a north-south divide in property prices among seaside towns, price growth in many northern seaside towns suggests the popularity of coastal living isn’t exclusive to the south, says Mr Galley.
What are your next steps?
Talk to our London City Mortgage advisers if you are an older homeowner considering equity release to improve your quality of life. We can recommend the lifetime mortgage and manage the process through provider valuation and offer to release the cash you need.
Learn more about the provider offers and interest rates to release a lump sum and trade-up to a property in a seaside town at this link:
Free equity release quote with products to release cash to buy a home on the coast.
Our mortgage advisers are experts at finding the most suitable product if you are buying a new home. Learn more by using the equity release calculator, property value tracker chart and mortgage costs calculator.
