Salcombe named UK's most expensive seaside town

The average house price in Salcombe has jumped by 123% since 2012, according to Halifax

Britain's most expensive seaside town is Salcombe in Devon - with an average house price of more than £1.2m in 2022, according to Halifax.

Salcombe overtook Sandbanks, in Dorset, which was the priciest seaside spot in 2021.

According to the bank's analysis, seven of the top 10 most expensive seaside spots were in Devon and Cornwall.

The least expensive seaside location was Greenock, Scotland, where the average house price was £97,608.

The bank analysed house price data for 209 coastal locations across England, Wales and Scotland in the 12 months to December 2022.

'Quite difficult'

Salcombe's main attraction is the picturesque estuary that forms the town's extensive waterfront, making it a popular place for water activities.

It is also favoured by ramblers who are drawn to the area's steep coastal paths.

While it is rich in natural beauty, Salcombe "does not function like a normal town", according to South Hams District Council leader Judy Pearce.

Ms Pearce, a Conservative councillor for Salcombe and Thurlestone, said the high proportion of second homes in the town "makes life quite difficult".

She said the population surges from about 2,000 to more than 23,000 in the summer months.

"In the winter the town is absolutely dead," she said. "It's like a morgue.

"There is nobody around at all. The lifeblood of the town is stripped out.

"In a community you have a lot of people doing voluntary jobs [but] there just isn't the manpower in Salcombe."

Salcombe has a population of about 2,000 residents, according to the 2011 census

The town is represented in Parliament by Conservative MP for Totnes Anthony Mangnall

Salcombe is about four hours and 30 minutes by car from London

Salcombe is a 50-minute drive from Plymouth, the closest city

Salcombe has a strong maritime history

Nigel Blazeby, from Salcombe RNLI, said the town "has always been an expensive place to live".

"It's a beautiful place and it's popular with locals and other people who want come to live here from further afield," he added.

House hunters

Many of the most expensive seaside locations in the Halifax analysis were found along the coastline of southern England, all areas popular with second homeowners.

Back in 2012 the average house price in Salcombe, at £558,538, was less than half the typical 2022 value.

According to the Halifax study, the cost of coastal homes across the UK increased by 56% between 2012 and 2022, from £195,509 to £304,460.

During the early months of the Covid pandemic, coastal and rural locations were particularly popular as house hunters looked for properties with more space.

Other locations where house prices have at least doubled over the past decade include Margate and Westgate-on-Sea in Kent.

By the end of 2022, a home in Margate cost 109% more, on average, than it did in 2012, rising from £146,276 to £305,191.

Padstow was named the priciest seaside spot in Cornwall

The average cost of a property in Westgate-on-Sea doubled, from £154,686 to £308,764.

'Broad spectrum'

Kim Kinnaird, mortgages director at Halifax, said owning a home by the sea was an "aspiration" for many.

"But this comes at a price in many locations and Britain's most expensive seaside spot, Salcombe in Devon, will set buyers back over £1.2m on average," she said.

"When we delve deeper into the cost of Britain's seaside homes it's clear that there is a broad spectrum in house prices."

She said second home ownership "undoubtedly" played a role in driving up house prices in desirable locations.

"While house prices in any location are driven by factors such as supply and demand and interest rates, there are also socio-economic factors at play," she said.

"Some of these factors are more acute in Britain's coastal communities and many British towns most in need of investment also sit near the shore."

Ms Pearce said the council was "fairly limited" in what it could do to make homes more affordable in Salcombe.

She said new builds in the area had a residency condition, there were cash incentives for homeowners to downsize and the council was building as many affordable homes as possible.

The authority has also agreed to charge second homeowners double council tax if legislation is approved by Parliament.

Ms Pearce said of the measures: "What we can do is a drop in the ocean, and that's the problem."

Halifax used Land Registry data covering England and Wales in addition to figures from the Registers of Scotland for the study.

Average house prices in the 10 most expensive seaside towns in Britain, according to Halifax analysis

1. Salcombe, Devon, South West - £1,244,025

2. Sandbanks, Dorset, South West - £952,692

3. Aldeburgh, Suffolk, East of England - £794,492

4. Padstow, Cornwall, South West - £790,847

5. Lymington, Hampshire, South East - £663,474

6. Yarmouth, Isle of Wight, South East - £611,816

7. Dartmouth, Devon, South West - £567,985

8. Kingsbridge, Devon, South West - £556,659

9. Wadebridge, Cornwall, South West - £548,669

10. Budleigh Salterton, Devon, South West - £537,681

The 10 least expensive seaside towns in Britain, according to Halifax analysis

1. Greenock, Inverclyde, Scotland - £97,608

2. Girvan, Ayrshire, Scotland - £105,410

3. Millport, Ayrshire, Scotland - £111,381

4. Invergordon, Ross and Cromarty, Scotland - £114,962

5. Saltcoats, Ayrshire, Scotland - £116,414

6. Newbiggin-by-the-Sea, Northumberland, North East - £117,663

7. Stranraer, Dumfries and Galloway, Scotland - £117,884

8. Wick, Caithness, Scotland - £124,857

9. Thurso, Caithness, Scotland - £126,716

10. Campbeltown, Argyll and Bute, Scotland - £129,348

The 10 seaside towns with the biggest increases between 2012 and 2022, according to Halifax analysis

1. Salcombe, Devon, South West, £1,244,025 - 123%

2. Margate, Kent, South East, £305,191 -109%

3. Westgate-on-Sea, Kent, South East, £308,764 - 100%

=4. Birchington, Kent, South East, £386,040 - 98%

=4. Aldeburgh, Suffolk, East of England, £794,492 - 98%

=6. Deal, Kent, South East, £391,325 - 97%

=6. Ramsgate, Kent, South East, £307,737 - 97%

=6. Yarmouth, Isle of Wight, South East, £611,816 - 97%

9. Whitstable, Kent, South East, £483,692 - 95%

=10. Padstow, Cornwall, South West, £790,847 - 94%

=10. Burnham-On-Crouch, Essex, East of England, £418,609 - 94%

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