Press Release Summary = The UK buy-to-let market may be part of the reason the average price of property by the seaside is soaring, according to analysts.
Press Release Body = The UK buy-to-let market may be part of the reason the average price of property by the seaside is soaring, according to analysts.
Figures published by Halifax Bank of Scotland (HBOS) today in its annual report on seaside town prices showed that more than a third of them enjoyed average house price rises of over ten per cent, a figure which rose to two thirds in Scotland.
Of these, the highest increase in the last year, 41 per cent, occurred in the Ayrshire town of Girvan, while the highest three-yearly increase of 82 per cent has taken place in the Borders town of Eyemouth, just off the A1 and close to the English border, but also within commuting distance of Edinburgh.
Overall, the Financial Times reports, nine of the top ten increases in the past three years were in Scotland, as were six of the top ten in the last year.
While Scottish prices soar, however, they have some way to go to match the costliest seaside towns are in south-west England, with homes in Sandbanks in Poole, Dorset, costing almost £489,000 each. Scotland\'s most expensive coastal town at £255,000 is North Berwick, up the east coast from Eyemouth.
In contrast, however, the lowest price rises in the past three years came in the Sussex coastal towns of Newhaven and Littlehampton, where prices have risen just 13 per cent during this time.
Many will ask how the variation can be explained. As ever, a number of factors will apply, but the buy-to-let industry is certainly part of the equation as those looking to invest in property see the advantages and appeal of the seaside.
This is certainly considered to be the case with the Scottish towns. Tim Crawford, group economist for the Bank of Scotland, told the BBC: \"They [the towns] attract a multitude of buyers including those looking for a lifestyle change, buy to let investors and second home buyers.\"
So buy-to-let is part of the reason for the Scottish boom, with the comparatively low prices offering bargains for investors. The buy-to-let factor may also partly explain the lower Sussex prices. A survey by Bradford and Bingley has shown that the most popular buy-to-let location is Brighton, Citywire reports, with the popularity of the bed and breakfast trade, overall vibrancy and connections to London all boosting the city. Thus it is possible that Sussex seaside towns are neglected because of their proximity to their larger neighbour.
Overall, the situation shows that there is considerable variation in prices in the seaside property market. For investors this means the opportunities are there when looking for bargains. As Scotland closes the gap on English towns, perhaps the investors will start to look to those other Sussex towns rather more.
2022
