We do like to live beside the seaside

Published 14th Jun 2008

AS we enter the summer months, the long awaited arrival of some warmer weather brings with it a prime period for a great British tradition – the weekend getaway.
Despite the current financial climate, sun-seekers have already started flocking to the UK’s picturesque coastal regions.

Similarly, when it comes to purchasing a property, it seems there are few truer depictions of the British psyche than the adage, “we do like to be beside the seaside!”
Seaside properties command among the highest prices in the UK, and have always attracted a range of purchasers, from homebuyers looking for an idyllic retreat or retirement destination, to second-home buyers and holiday-let investors.

Now more than ever, it is proving an excellent time to invest in UK coastal property, with an increasing number of people choosing to holiday on home soil, as the credit crunch tightens purse strings and fuel charges push up the price of flights.

According to the Halifax Estate Agents Seaside Town Review, which tracks the house price movements in 97 seaside towns in England and Wales, price growth in coastal regions averaged 78% between 2002 and 2007, outperforming price increases across England and Wales as a whole by 11% over the same period.

In addition, 18 coastal towns were reported to have experienced growth of at least 100% over the last five years.

Of the top 25 seaside towns for house price growth between 2002 and 2007, 11 are in Wales and in spite of significant rises, these areas still offer excellent value for money.
For example, Caernarfon has recorded an average house price increase of 125% in five years, but prices have remained relatively low compared to the UK average, ending 2007 at £149,444.

Demand for coastal property is strong across much of Wales, and several regions command very strong prices. Areas such as The Mumbles and Cardigan Bay, with their excellent beaches, offer some of the most robust locations on the South and West coasts respectively, while Tenby leads the way in Pembrokeshire.

While no property has immunity against current market conditions, and some decline in seaside property is a possibility, the price increases across the UK are an encouraging indication of their robustness.

Source: ' icWales '

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