Sandbanks remains the UK's priciest seaside location – Lloyds

Coastal home prices dip across Britain, but premium markets retain long-term gains

Sandbanks remains the UK's priciest seaside location – Lloyds

Sandbanks has retained its title as the most expensive coastal property market in Britain, according to new figures released by Lloyds Bank, despite a minor dip in average prices over the past year.

The Dorset peninsula, known for its luxury homes and sandy beaches, recorded an average property value of £965,708. This represents a 3% decline year-on-year, or roughly £33,600, yet still places the area well ahead of other sought-after seaside locations.

Sandbanks continues to attract affluent buyers, drawn to its combination of natural beauty and luxury living. The area offers clean, sandy beaches, upscale dining venues, and high-end properties that appeal to celebrities and wealthy individuals alike.

Following Sandbanks, the next most expensive coastal markets are also concentrated in the South West. Salcombe in Devon ranked second, with an average home costing £826,159. Known for its scenic estuary views and vibrant town centre, the area remains a favourite among second-home buyers.

Padstow, Cornwall, came in third at £715,974. The fishing village has gained a reputation for fine dining and its picturesque harbour. Suffolk’s Aldeburgh followed at £619,693, celebrated for its arts scene and unique architectural character.

To compare, the UK’s average house price is £271,000, and £296,000 in England, based on the latest figures from the Office for National Statistics (ONS).

Across the UK, the average home near the sea is now priced at £295,991, marking a 1% decline from the previous year. Despite this, five-year growth remains strong, with coastal properties up by 18% on average. In more exclusive locations, prices have risen by 37%, translating to an increase of £168,408.

St Mawes, located in the South West, saw the most significant five-year surge, with values climbing by 68%, or £222,602.

Brighton led all coastal locations in total property value transacted last year, with sales exceeding £927 million. Plymouth (£810 million) and Poole (£802 million) followed closely.

In terms of transaction volume, Plymouth topped the list with 3,258 sales, trailed by Bournemouth (2,195) and Brighton (1,982). Combined, coastal housing transactions in Britain amounted to approximately £21 billion over the past year.

The most affordable coastal towns are found in Scotland, with Campbeltown ranking as the least expensive. Properties there averaged £103,078, down 11% year-on-year. Located on the Kintyre Peninsula, Campbeltown offers scenic vistas and ferry access to nearby islands.

Other budget-friendly spots include Rothesay (£111,764), Millport (£114,008), and Port Bannatyne (£115,421), all nestled on Scotland’s west coast. Outside Scotland, Newbiggin-By-The-Sea is the least expensive coastal location in England, while in Wales, Prestatyn holds that position.

“Coastal living continues to hold a special appeal – whether it’s the lure of sea views, sandy beaches, or a slower pace of life,” said Amanda Bryden, head of mortgages at Lloyds. “Our latest research shows the most exclusive seaside spots – like Sandbanks – still command premium prices.  

“At the other end of the scale, there are still pockets of real affordability – particularly in Scotland, where buyers can find coastal homes for a fraction of the price. For those willing to look beyond the traditional hotspots, there are some hidden gems offering great value and a strong sense of community.

“It’s also important to recognise that not all coastal areas share the same fortunes. Some seaside towns face significant challenges, from seasonal economies to a lack of affordable housing for local people.”

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