House prices have fallen sharply in some of the UK’s best-known coastal locations over the past year, although many seaside towns continue to command significant premiums over their surrounding markets, according to new research from Yopa.
The estate agency found that average property values in Seahouses, Northumberland, dropped by 38% year-on-year, the largest decline among the coastal hotspots analysed. Portmeirion in Wales recorded a fall of 20.2%, while prices in Fowey, Cornwall, were down 18.3%.
Other notable declines were recorded in North Berwick (-13.8%), Lossiemouth (-11.8%), Watchet (-10.7%) and Aldeburgh (-10.6%).
Despite the falls, several coastal markets continue to attract a substantial premium. Sandbanks in Dorset topped the list, with an average property price of £682,598, 75.6% higher than the average across the wider Bournemouth, Christchurch and Poole area.
Padstow ranked second, with homes commanding a 70% premium over the wider Cornwall market, followed by Salcombe at 68.1%. Perranporth, Southwold, Kirkcudbright, Helensburgh and Porthcawl all recorded premiums of around 50% or more.
The research also highlighted a number of coastal locations where house prices remain significantly below wider local authority averages. Thurso in the Highlands was the most affordable, with average property values 38.1% below the wider Highland average.
Scarborough offered the second-largest discount at 34.8% below the North Yorkshire average, followed by Lossiemouth (-31.3%), Millport (-30.6%), Campbeltown (-29.6%) and Weston-super-Mare (-27.5%).
Yopa said the figures demonstrate that while some coastal markets have cooled over the past year, demand for homes in sought-after seaside locations continues to support substantial price premiums in many area
Verona Frankish, CEO at Yopa, commented: “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.
“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.”
Read the orginal article: https://propertyindustryeye.com/seaside-hotspots-see-property-prices-tumble-yet-buyers-still-pay-hefty-premiums/
