Second homes and incomer buyers are good news - Propertymark

Propertymark has stepped into the row over whether there should be more controls over second homes, holiday lets and people from outside an area buying homes.

The issue has come to a head following a Lloyds Bank report naming the Devon resort of Salcombe as England’s most expensive waterside location for property.

Salcombe’s prime position in the expense league table comes despite a hefty fall from previous high prices. According to the latest analysis from Lloyds Bank, properties in the town now cost £970,657 on average, down 22 per cent (or £270,641 in cash terms) compared to 2022.

Amanda Bryden - head of mortgages at Lloyds - says: “Sea views, sandy beaches, brisk morning dips – it’s easy to see why coastal living is so desirable. Our data shows the most sought after coastal locations in the country can attract average price tags of close to a million pounds with in-demand properties often going for much more. These pricier areas can result in a lack of affordable homes for first-time buyers, a problem often exacerbated by high levels of second home ownership, meaning that many who have grown up in the area may find themselves priced out of owning their own home locally.”

She continues: “It’s also important to remember that in some coastal areas around Britain, the idyllic image of a seaside resort doesn’t apply. Indeed there are specific socio-economic factors, often as a result of changing tourism habits, or the decline of other local industries, which can lead to higher levels of deprivation.”

However, Propertymark is pleading for a balanced view of the issue.

Jacqui Courtier, Propertymark’s regional executive for Devon and Somerset, has issued a statement saying:  “The South West of England has emerged as one of the most popular destinations in the UK, attracting visitors and new residents alike with its stunning coastlines and vibrant communities. It is great to see this beautiful region gain the recognition it deserves. 

“However, this surge in popularity comes with both opportunities and challenges for our local community. 

“The increased demand for property in the South West has naturally driven up prices, which can pose challenges for local purchasers. It's important to acknowledge this concern, but it's equally crucial to consider the broader benefits that this influx brings. The rise in popularity translates into a boost for local industries, including tourism, retail, and hospitality. This economic growth can lead to job creation, improved infrastructure, and enhanced services, ultimately benefiting our communities. 

“As we navigate this period of growth and change, it is essential to strike a balance that preserves the character of our local communities while embracing the opportunities that increased popularity brings.”

The average coastal home is now £293,710, some 4% lower than in 2022 but 48% higher than 10 years ago.

Coastal properties in Margate in the South East and Amlwch in Wales have more than doubled in the last decade to £309,049 and £255,189 respectively.

All 10 of the least expensive coastal locations are in Scotland. Coastal property prices are the cheapest in Rothesay, on the Isle of Bute, where homes cost £101,477 on average, some 30% less than in 2022.