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House prices in seaside towns rise 8pc as demand remains strong

Homes on the coast attract a premium and house prices are up 8% on the previous year as buyers seek to improve their quality of life.

Living in an idyllic seaside town remains a goal for many homeowners looking to improve their quality of life with house prices rising 8% in the last year, according to Halifax.

Average property values are higher by £22,082 rising from £265,005 in 2020 and are now £287,087 and the most expensive town is Sandbanks followed by Salcombe.

Due to the continued demand to live by the sea, over the last ten years coastal towns have seen house prices rise 50% or an average of £95,599 with the highest rise for Margate up 98% or £139,814.

For older homeowners wanting a dream home by the sea by relocating and buying a new property at a higher price, you can use equity release with a lifetime mortgage with no need to make repayments.

South West coast the most popular

People want the lifestyle, beautiful scenery and sea air of a seaside town and the most popular choice is the South West with eight out ten of the most expensive towns in Britain.

This table from Halifax shows the top ten most expensive seaside towns with average house prices to December 2021.
Seaside town Region House prices
Sandbanks South West £929,187
Salcombe South West £912,599
Padstow South West £588,090
Lymington South East £565,790
Alderburgh East Anglia £515,444
Fowey South West £491,042
Dartmouth South West £485,760
Lyme Regis South West £473,861
East Wittering South West £472,364
Kingsbridge South West £464,858
Sandbanks in Dorset has the highest average house prices of £929,187 rising 10% since 2020 followed closely by Salcombe with £912,599.

The greatest change is the town of Millport in Scotland up 53% or £39,144 over the past year to £113,292 and next is The Lizard in the South East up 27% or £95,454 with property values of £442,573.

If you retired to a seaside home you could take advantage of rising property prices and access a tax-free lump sum or drawdown cash over time using equity release.

Average property values have increased 27% over five years with the highest for Port Bannatyne in Scotland up 56% or £40,167 with the biggest rise by value for Salcombe up 50% or £303,493.

See the value of property if you trade-up for a seaside town using equity release including interest costs using this link:
Free equity release calculator with instant figures when buying a home on the coast.

Strong house price growth over ten years

Our long term love affair with living by the sea has been going on over ten years with few signs of stopping with house prices higher by 50% with average gains of £95,599.

Average prices have increased from £191,488 in 2011 to £287,087 with the most popular coastal town being Margate in the South East where prices are up 98% or £139,814 in the decade.

The top four highest growth in property values are in the South East, Margate, Hythe, Leigh on Sea and Southend on Sea, benefiting from their close proximity to London.

The strong gains in property values means the older you are the more cash you can release with loan to values based on age for lifetime mortgages and interest rates from as low as 3.6%.

Seaside towns in the South West attract the wealthiest homebuyers with properties in Salcombe increasing by 81% or £408,412 and Sandbanks higher by 73% or 390,835.

You can even consider replacing an existing equity release plan if you have benefitted from these gains which could mean you can reduce your interest rate and access more cash to improve your lifestyle.

In the top twenty biggest house price increases, two towns are in East Anglia with Walcott rising 80% or £155,136 and Cromer up 71% or £148,873 over ten years.

What are your next steps?

Speak to our London City Mortgage advisers if you are buying a coastal property, we can manage the application and recommend specialist legal advice.

Find out more about the leading providers to release cash using a lifetime mortgage when trade-up with this link:
Free equity release quote with interest rates to buy your seaside home.

Our expert advisers can find the products matching your lifestyle needs. Learn more by using the equity release calculator, property value tracker chart and mortgage costs calculator.

Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

1.18% Fixed Rate
60% Loan to Value
£1,034 App Fee
Until 31/10/2022
Reverts to 3.59%
1.16% Fixed Rate
60% Loan to Value
£1,525 App Fee
Until 01/11/2022
Reverts to 4.09%
1.17% Fixed Rate
60% Loan to Value
£1,025 App Fee
Until 31/09/2022
Reverts to 3.59%
1.19% Fixed Rate
60% Loan to Value
£999 App Fee
2-Years Time
Reverts to 3.59%

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    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.


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