Seaside towns outpace London in house price rise
1 February 2010
The past decade has seen seaside properties experience the biggest house price increases, outpacing even the London market, according to a recent report.
Although they may have witnessed the strongest price gains in recent years, the research is indicated that growth will slow down during the next decade.
The highest average house price rise was experienced in Redruth, Cornwall, as they rose 207% in the ten year period. Two other Cornish towns were also in the top four, in Penzance (188%) and Helston (174%), according to figures taken from Halifax, the mortgage lender.
It was not just the South West coastal properties that experienced a sharp increase however, as properties in Wallsend, in Tyne rose from £39,381 to £103,893 and houses in Great Yarmouth, Norfolk, climbed from £55,435 to £144,587.
Martin Ellis, housing economist at Halifax, commented: “We look at seaside towns fairly frequently and we have noticed that they have tended to outperform in recent years but, even so, we were surprised they dominated the top 10 in quite this fashion.”
To put these figures into comparison, Greater London properties rose 80% over this period, while house prices in the South East increased 85% during the decade.
It has been suggested that the growth of the second-home and leisure market has been a catalyst for seaside property price gains, with a major proportion of people retiring to coastal locations. Furthermore, the weakening of the pound in recent years has caused wealthy home buyers to purchase properties in this country rather than overseas.
Source: Financial Times
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