House prices tumble in seaside hot spots

Average house prices are falling in Salcombe on the south coast of Devon

Affording a home in one of Britain's ritziest seaside towns has long been way out of reach, even for the moderately rich.

But now it seems that house prices in two of the smartest resorts have tumbled significantly in the last year.

In the boating haven of Salcombe in South Devon, prices have fallen 8.2%, according to the Halifax.

And in Sandbanks in Dorset, renowned for being the UK's most expensive resort, prices are down 5.6%.

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Buying a house in Salcombe has, on average, got £52,000 cheaper, while homes in Sandbanks cost £37,000 less than last year.

A typical home in Sandbanks cost £626,553 at the start of 2018, according to the Land Registry.

Sandbanks in Dorset

However it is a different story in most other seaside towns.

Prices are still rising in Aldeburgh, Lymington, Padstow and Lyme Regis in Dorset, for example.

The Halifax said the main reason was the relatively high cost of Stamp Duty.

Someone buying an average home in Sandbanks last year would have been liable for more than £23,000 in tax.