Demand for coastal living has seen house prices in Britain’s seaside towns rise 10% over the year as homeowners change their lifestyle.
Seaside towns are popular with home buyers as house prices rise 10% or £24,055 over the year according to research from Halifax and average property values are £265,978.
The most expensive seaside town is Salcombe in Devon with average house prices of £950,325 followed by Sandbanks in Poole with £835,971.
Coastal towns have been in high demand over the last ten years with property values increasing an average of 36% or £71,046 as residents value the picturesque scenery and relaxed way of life.
This could be the perfect setting for older homeowners buying a new house with equity release as interest rates are low, giving you the choice to roll-up interest or pay as you go.
Highest property values in South West
The top ten most expensive are dominated by properties located in the South West of England with only Alderburgh in East Anglia and Lymington in the South East making it on the list.
This table from Halifax shows the top ten most expensive seaside towns with average house prices to June 2021.
| Seaside town | Region | House prices |
|---|---|---|
| Salcombe | South West | £950,325 |
| Sandbanks | South West | £835,971 |
| Padstow | South West | £616,368 |
| Lymington | South East | £570,451 |
| Alderburgh | East Anglia | £566,339 |
| Wadebridge | South West | £536,760 |
| Dartmouth | South West | £523,182 |
| St Mawes | South West | £501,638 |
| East Wittering | South West | £494,025 |
| Fowey | South West | £488,083 |
Demand has seen rising house prices with the cheapest property in tenth position Bigbury on Sea at £385,243 two years ago replaced by Fowey at £488,083 today, a rise of 26% or £102,840.
The impact of the pandemic has forced people to reassess their lifestyle and for those with the resources, Salcombe, Sandbanks and Padstow in the South West have been a magnet to experience life by the water.
In the last year house prices have been rising quickly with St Mawes in the South West up 48%, Eyemouth in Scotland higher by 36% and Hundtanton in East Anglia up 27%.
If you intend buying a dream home in retirement, you can use equity release to trade-up and purchase a more expensive property as your retirement income is not considered and no interest payments are required.
See what home you can buy in a seaside town using equity release including interest costs and benefit of rising house prices using this link:
Free equity release calculator with instant figures when buying a home in a seaside town.
The least expensive seaside homes can be found in Scotland with properties in Millport on the Isle of Cumbrae with an average cost of £74,148 followed by Girvan with a cost of £90,210.
Strong house price growth for seaside homes
Over the past decade homes in coastal towns have seen house price growth due to the relentless demand and limited supply up 36% from an average of £194,932 in 2011 to £265,978.
The biggest gain has been in the seaside town of Padstow in Cornwall with house prices up 75% or £264,910 rising from £351,458 ten years ago to £616,368.
In second place by percentage rise is Port Bannatyne in Scotland up 75% from £73,351 to £128,405 followed by Herne Bay in the South East of England rising by 72% from £189,718 a decade ago to £326,812.
These strong gains in house prices means you can use equity release to buy a home by the coast as provider fixed interest rates can be as low as 3.0% giving you a good chance of preserving your equity.
House price growth has been even more impressive in the last year for some seaside towns with St Mawes in Cornwall with prices up 48% or £161,726 and property values now £501,638.
Dartmouth in the South West has seen prices rise 30% or £119,544 and property values of £523,182 making it difficult for younger buyers to move to the coast.
For older homeowners living in these seaside towns, the huge price gains means they can use a lifetime mortgage to release cash for a specific reason such as purchase a new car, home improvements or gift to family.
What are your next steps?
Speak to our London City Mortgage advisers if you are buying a new home in a seaside town, we can recommend the lifetime mortgage plan for you to talk to your family.
Find out more about the leading products and interest rates to releasing equity to buy a home in a seaside town with this link:
Free equity release quote to release cash to buy a coastal property.
Our expert advisers can find the best products to meet your lifestyle needs. Learn more by using the equity release calculator, property value tracker chart and mortgage costs calculator.
