Yahoo Finance Demand for seaside homes from city dwellers doubles since pandemic hit
Homes by the coast in the UK are selling quicker than ever and seaside demand has more than doubled compared to before the pandemic, driven largely by city dwellers, new research has revealed.
Enquiries for homes in coastal locations from city dwellers shot up 115 per cent since before the pandemic hit, driven by many workers no longer expecting to commute every day and seeking lifestyle changes and bigger homes as a result. By comparison enquiries about moves within cities rose by 36 per cent.
As a result, the average time for a home on the coast to sell dropped from 71 days in 2019 to 51 days in 2021.
Rightmove’s Tim Bannister said: “What’s really interesting about this research is that it suggests that the initial surge of people enquiring about locations outside of cities before the pandemic, has transitioned into a more medium term shift in behaviour.
“All of this does mean that in some of the coastal locations that have seen a significant increase in buyers from other locations, there is added competition as people search for their next home.”
Where are the coastal property hotspots?
The area that saw the biggest surge in interest from prospective buyers was Dartmouth in Devon, which saw a rise of 117 per cent, pushing the local market to a 20-year high.
Dartmouth estate agent The Coastal House said: “We are seeing people put in offers on properties without even visiting them in person. The increase in demand was further amplified by the extension of the stamp duty holiday to the end of September and the rapid progress of the vaccine roll-out.
“Last year’s lockdown had a significant impact on the number of homes sold in the South Hams. Only 1,322 homes sold in 2020: a drop of 50 per cent on the number of homes sold in 2019 (2,633).
One of the drivers in this demand is from the cities, where families are looking for a different lifestyle. “Buyers are constantly calling us to check on new listings of high-value homes.
”With property demand so far in excess of supply, and a distinct lack of premium, unique homes available to buy, we predict that property prices will continue to remain strong throughout at least the next few months,” The Coastal House said.
Next on the list of coastal hotspots was Salcombe, also in Devon, where buyer demand soared 112 per cent.
Theo Spink, director of property agents Luscombe Maye, said: “It is now the most expensive coastal town in the country – even more so than Sandbanks.
“The demand in Salcombe itself has come from all over the country – yes, London and the South East, but also the Midlands and central/southern England such as Wiltshire and Hampshire.
“Demand has always outstripped supply in the town but post Covid, this has been exacerbated.
“Many properties, particularly this year, have sold exceptionally quickly – with sometimes multiple viewings in a very short period of time, resulting in multiple offers being received.
“This has meant some properties achieving well in excess of their price guide.”
Have seaside house prices risen?
The average cost of a coastal home has rose by seven per cent from £255,000 in 2019 to £272,165 this year.
Some coastal areas saw average asking price growth of more than 20 per cent compared to 2019: Helensburgh in Dunbartonshire (27 per cent), Padstow in Cornwall (24 per cent) and Gourock in Renfrewshire (21 per cent).
Mr Bannister said: “While this is by no means an end to city life or a mass exodus, it does suggest that many buyers are seeing city and coastal locations both as options to consider.”
Read More
Toilet block in ‘stunning coastal location’ up for auction
London leavers shocked to find home buying budgets won’t stretch far in popular commuter towns
