The high cost of homeownership has caused the property market at coastal locations to slump over the last year, analysis by park bungalow provider Regency Living has revealed.
Dorset’s prestigious Sandbanks has seen the largest decline, with the average house price falling by -4.6% over the last year, whilst Perranporth (-3.3%), Dartmouth (-2.1%) and Padstow (-2%) also make the list.
Despite these house price reductions, all four areas are still home to an average house price north of £400,000, with the average house price of £521,785 across Sandbanks coming in 79% above the wider average for Bournemouth, Christchurch and Poole.
Tim Simmons, sales & marketing director at Regency Living, said: “It’s certainly no coincidence that some of the most popular coastal locations boasting the most over-inflated house prices have also been subject to some of the largest market corrections over the last year.
“Whilst the picture is certainly improving, homebuyers are continuing to contend with far higher mortgage rates than they’ve become accustomed to in recent years and this is restricting the price they can afford to pay at all levels of the property market.”
There’s been a shift in demand towards more affordable coastal locations.
Kirkwall has seen the largest increase in the average house price over the last year, up 8.1%, with Burntisland (+7.4%), Dawlish (+7%), Porthcawl (+6.8%) and Thurso (+6.7%) making the top 10, joined by Cardigan (+6.7%), Fowey (+5.8%), Girvan (+5.5), Aberystwyth (+4.9%) and Whitby (+4.6%).
Of the top 10 areas to see the highest coastal house price growth over the last year, just three are home to an average house price higher than the current UK benchmark – Dawlish (£275,579), Porthcawl (£308,081) and Fowey (£419,626).