Seaside resorts suffered a property price drop of up to 38% during the past year despite high premiums paid by some buyers, Yopa reveals.

Sea houses in Northumberland saw the largest annual decline in house prices of all the coastal hotspots, with the average property value falling by nearly 40%.

Portmeirion in Wales ranks second, where house prices have declined by 20.2%, while Fowey in Cornwall has seen values fall by 18.3%.

It’s no surprise that some of these premium locations have seen house prices cool.”

Verona Frankish, Chief Executive at Yopa, says: “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,” she says.

“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.”

Substantial premiums

Many buyers continue to pay substantial premiums, with some willing to go as much as 76% higher than the wider local authority average in order to secure a home by the sea.

Sandbanks in Dorset tops the table for premium prices, where the average property currently sits at £682,598, 75.6% higher than the wider Bournemouth, Christchurch and Poole average.

Padstow in Cornwall ranks second, commanding a premium of 70%, whilst Salcombe in Devon sits third at 68.1%.

Thurso in the Scottish Highlands ranks as the most affordable coastal hotspot when compared to its surrounding market, with the average house price sitting 38.1% below the wider Highland average.

Last month, Rightmove figures showed seaside hotspots were bucking the national trend with double digit price growth.

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