Revealed: the most in-demand seaside towns for homebuyers

Whitby in North Yorkshire may be the UK’s most sought-after seaside town for homebuyers, according to a new report.

Analysis by the property portal Rightmove found progressively more buyers are now thinking about purchasing properties in coastal areas, producing a spike in demand for houses within the most popular seaside towns.

Here, Which? takes a look at the most popular coastal areas and look at the towns that may offer the best value for buyers.

The most in-demand seaside towns

Rightmove assessed buyer demand and available housing stock in coastal towns around the UK, and located Whitby in North Yorkshire and Whitley Bay in Northumberland came out on the top.

1st place: Whitby (North Yorkshire)

Whitby has long been a popular destination for holiday homes, but auctions are reporting an outburst in interest from families and investors looking for new properties.

Nick Henderson of Hendersons estate agents in Whitby says: ‘Since we reopened a few weeks ago, we've been selling bigger homes much more quickly than ever before, as families are changing the way they live and therefore are swapping a ten-minute commute in to the office for any ten-minute walk towards the beach.’

The current average selling price in Whitby is lb213,000, an increase of 5% within the last 12 months.

2nd place: Whitley Bay (Tyne and Wear)

Whitley Bay near Newcastle is usually noted for the Spanish City, a famous pleasure beach and funfair that drew visitors for decades before closing in 2000.

The area has undergone significant regeneration recently, with highly-rated beaches and schools seeing young families flock towards the area and the average asking price rising to lb263,000.

Susan Usher of Your Move auctions in Whitley Bay says: ‘Since the market reopened we’ve had a rise in people seeking to move from places like York and the south, in addition to house hunters considering an apartment they are able to buy like a second home’.

3rd place: Troon (Ayrshire)

Troon in Ayrshire is conveniently located for the cities of Ayr and Glasgow, and is most well-known for that Royal Troon Club, which has hosted outdoors Championship tournament nine times.

The average asking price in Troon stands at a very affordable lb165,000, though it has grown by more than 4% in the past year.

Top 10 seaside towns by buyer demand

The table below shows the top 10 most in-demand seaside towns in the UK, based on Rightmove’s analysis.

Three areas of Cornwall – Padstow, Newquay and Bude – result in the list, while Salcombe and Ilfracombe represent Devon.

Cheapest and many expensive seaside towns

The gap between the cheapest and most expensive coastal towns is more than the usual million pounds, so there’s value available for all budgets.

The cheapest coastal town is Newbiggin-by-the-Sea, in Northumberland (pictured below).

The average asking price here is just below lb110,000, though values have raised by 9% previously Twelve months.

The cheapest seaside towns tend to be in the North of England and Scotland, as shown in the table below.

At the other end of the scale, Sandbanks in Dorset (pictured below) is easily the most expensive coastal town to buy a house.

The Poole landmark is a haven for millionaire footballers and posseses an average asking price of lb1.24 million – though this really is 1% down on a year ago.

The only other seaside area with asking prices over a million pounds is nearby Canford Cliffs, a little more than the usual mile down the road.

Salcombe in Devon, Aldeburgh in Suffolk and Milford on Sea in Hampshire make up the top five priciest coastal towns.

Buying a coastal home or holiday let

People buying coastal homes generally fall under three categories – those moving to the coast themselves, those buying second homes for staycations, and those buying properties being an out-and-out buy-to-let investment.

If you’re moving towards the coast for a change of lifestyle or purchasing a vacation home solely for your own personel use, check out our guide on finding the best home. This enables you to understand and compare key ‘quality of life’ considerations for example life span, happiness and the quantity of highly regarded local schools.

It’s also worth taking a look at our story on coronavirus and house prices, to find out whether now really is time to take the plunge.

Holiday buy-to-let: the pros and cons

Investing inside a holiday buy-to-let could be lucrative, but it’s a complicated process and won’t function as the right option for everyone.

When selecting a good investment property, you’ll need to look carefully at supply and demand, and consider the features that will make the house attractive to visitors. The coastal location will be a draw, but how about a wide open fire, games room or that increasingly vital asset – a high-speed internet connection?

Mortgages could be complicated, too. Most financiers don’t offer deals on holiday lets, as a result of lack of guaranteed income, especially outside of peak season. To get a mortgage you’ll require a big deposit, and you’ll have to be in a position to prove your rental income covers 145% of your mortgage payments.

If you’re letting a furnished holiday home, you might be in a position to take advantage of some regulations, so long as it’s available for at least 210 days annually and occupied not less than 105 days.

If you believe a holiday let might be right for you, we recommend taking independent financial suggestions about the key mortgage and tax considerations before rushing in.