High mortgage rates are casting a shadow over Britain’s beloved coastal hotspots, with fresh research from Regency Living revealing a slump in house prices across some of the nation’s priciest seaside retreats.
The residential park bungalow provider’s latest study of 100 top coastal locations shows property values creeping up by just 1.9% over the past year—well shy of the UK’s 4.6% average—and in some iconic spots, prices are even tumbling.
Sandbanks, Dorset’s glitzy coastal gem, has taken the hardest hit, with average house prices dropping -4.6%. Cornwall’s Perranporth (-3.3%), Dartmouth in Devon (-2.1%), and Padstow (-2%) aren’t far behind, ranking among the top 10 biggest declines.
| Town | House Price Change | Average House Price |
|---|---|---|
| Sandbanks | -4.6% | £521,785 |
| Perranporth | -3.3% | Above £400,000 |
| Dartmouth | -2.1% | Above £400,000 |
| Padstow | -2% | Above £400,000 |
| Kirkwall | +8.1% | Not specified |
| Burntisland | +7.4% | Not specified |
| Dawlish | +7% | £275,579 |
| Porthcawl | +6.8% | £308,081 |
| Thurso | +6.7% | Not specified |
| Cardigan | +6.7% | Not specified |
| Fowey | +5.8% | £419,626 |
| Girvan | +5.5% | Not specified |
| Aberystwyth | +4.9% | Not specified |
| Whitby | +4.6% | Not specified |
Yet, these areas still command hefty tags—Sandbanks averages £521,785, a steep 79% above the Bournemouth, Christchurch, and Poole norm, while all four hover above £400,000.
“It’s certainly no coincidence that some of the most popular coastal locations boasting the most over-inflated house prices have also been subject to some of the largest market corrections over the last year,” notes Tim Simmons, Sales & Marketing Director at Regency Living.
Not every seaside town is feeling the pinch, though. Kirkwall in Orkney leads the pack with an 8.1% rise, followed by Burntisland (+7.4%), Dawlish (+7%), Porthcawl (+6.8%), and Thurso (+6.7%). Cardigan (+6.7%), Fowey (+5.8%), Girvan (+5.5%), Aberystwyth (+4.9%), and Whitby (+4.6%) round out the top 10 growers.
Only three—Dawlish (£275,579), Porthcawl (£308,081), and Fowey (£419,626)—top the UK average, hinting at a tilt towards cheaper shores.
Simmons explains the shift: “Whilst the picture is certainly improving, homebuyers are continuing to contend with far higher mortgage rates than they’ve become accustomed to in recent years and this is restricting the price they can afford to pay at all levels of the property market.”
He’s quick to add, “That’s not to say that we’ve fallen out of love with the seaside, however, there’s certainly been a shift towards the more affordable coastal locations, with just three of the top 10 best performing home to an average house price above that of the UK benchmark.”
For many, affordability remains the sticking point.
“Affordability has always been a key issue across the nation’s most sought after coastal locations, as high demand to live beside the seaside, coupled with a finite level of stock, has driven property prices up considerably,” Simmons says. “In fact, it’s often the key factor we see amongst silver downsizers looking to move to such areas across the South West, South East and East of England. Whilst they want to enjoy a coastal lifestyle, they simply can’t afford to realise this retirement within the bricks and mortar market. Instead, a residential park home provides them with an affordable alternative, without having to compromise on their dream location.”
For Londoners eyeing a coastal escape, this split market could be a golden ticket—pricey icons are cooling, while lesser-known gems rise.
With mortgage costs still biting, the seaside dream might just be shifting sands…