That’s according to Lloyds Bank, which found that prices in the town were down 22% (or £270,641 in cash terms) compared to 2022 (over £1.2 million).
In its latest Coastal Homes Review, it has tracked house price movements in 198 coastal locations in Great Britain, using data from the Land Registry and Registers of Scotland.
It found that the average price of a home by the water is now £293,710, down 4% on the previous year.
And the average cost of properties in Britain’s most expensive coastal locations have dropped below £1 million.
Most expensive places
After Salcombe, affluent Sandbanks is just behind in second place, with an average price tag of £957,739. Padstow in Cornwall is third, with homes costing £701,979 on average.
Amanda Bryden, head of mortgages at Lloyds Bank, said: “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.”
Below are the 10 most expensive coastal locations:
1. Salcombe, South West – £970,657
2. Sandbanks, South West – £957,739
3. Padstow, South West – £701,979
4. Lymington, South East – £648,881
5. Dartmouth, South West – £569,850
6. Wadebridge, South West – £537,337
7. Lyme Regis, South West – £533,526
8. St. Ives, South West – £528,181
9. Budleigh Salterton, South West – £508,139
10. Kingsbridge, South West – £503,525
Most affordable coastal locations
At the other end of the scale, coastal property prices are the cheapest in Rothesay, on the Isle of Bute, where homes cost £101,477 on average, 30% less than in 2022.
Bryden added: “There are more affordable places to call home by the sea, especially the further north you head. Those with a more adventurous streak may want to consider setting up home in Rothesay on the charming Isle of Bute, which will set buyers back around £100,000 on average.
“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.”
Britain’s 10 least expensive coastal locations are all in Scotland and are listed below:
1. Rothesay – £101,477
2. Greenock – £107,111
3. Girvan – £107,349
4. Millport – £113,622
5. Saltcoats – £115,372
6. Campbeltown – £115,813
7. Ardrossan – £119,166
8. Port Bannatyne – £119,951
9. Stranraer – £120,157
10. Fraserburgh – £129,606
