A stunning coastal location that’s famous for its millionaires’ mansions has been pinpointed for its plummeting property prices. New research has uncovered that some of the UK’s most popular coastal areas have house values that are very much on the decline.
Poole, in Dorset, is home to Sandbanks, which is one of the most affluent neighbourhoods – not only just the UK but also the world. Sandbanks boasts an award-winning beach that has been dubbed as “Britain’s Palm Beach”. The neighbourhood is a predominantly residential area, with homes selling for millions of pounds – with an average house price of £1,529,979. Celebritiesincluding Liam Gallagher and Harry Redknapp are known to have snapped up properties there. But according to new research it seems as if the tide could be turning on the property hotspot.
Data compiled by residential park bungalow provider Regency Living has revealed that the luxurious area has seen the largest decline in property values, with the average house price falling by more than 4.6% over the last year.
Tim Simmons, sales and marketing director at Regency Living, said: “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.
“Whilst the picture is certainly improving, homebuyers are continuing to contend with far higher mortgage rates than they’ve been accustomed to in recent years and this is restricting the price they can afford to pay at all levels of the property market.”
The research revealed that the appeal of these popular seaside locations have dropped not because Brits have “fallen out of love with the seaside” but rather as a result of market uncertainty and higher mortgage rates.
Along with Sandbanks, other popular locations are within the top 10 areas with the largest house price reductions.
Devon’s Dartmouth as well as Perranporth and Padstow in Cornwall also made the list of coastal towns where house prices have taken a dip.
Despite the fall, all houses in the coastal towns currently have an average house price of over £400,000 which is significantly higher than the average house price across the country which is £267,200.