Amidst a rising tide of criticism, a senior Propertymark figure has stepped forward to advocate for the value of second and holiday homes. This stance comes in response to recent scrutiny, particularly sparked by a Lloyds Bank report that identified Salcombe, a resort in Devon, as the most expensive waterside location for property in England. Despite the prevailing trend of skepticism, this representative has highlighted the importance of recognizing the diverse roles and contributions of second and holiday homes within the property market.
The debate surrounding second and holiday homes has reached a critical juncture, drawing attention to the broader implications of their presence. As discussions unfold, it becomes increasingly vital to consider the multifaceted dynamics at play, acknowledging both the economic significance and social considerations associated with these properties. Amidst the discourse, the Propertymark figure’s advocacy serves as a reminder of the nuanced perspectives required to address the complexities of housing and property ownership in contemporary society.
Salcombe continues to hold its prestigious status as one of the most expensive property markets, even though it has experienced a significant decline in prices from previous peaks. Recent analysis conducted by Lloyds Bank reveals that the average property price in this coastal town now stands at £970,657. This marks a noteworthy 22 per cent decrease compared to 2022 figures, representing a substantial £270,641 drop in cash terms. Despite this decline, Salcombe remains an attractive destination for property investment, boasting its enduring appeal despite fluctuations in market trends.
Amanda Bryden, Head of Mortgages at Lloyds, sheds light on the allure of coastal living, emphasizing the intrinsic value of features such as sea views, sandy beaches, and the invigorating experience of morning swims. These elements contribute to the desirability of coastal locations, where properties often command premium prices. Bryden’s insights underscore the enduring appeal of sought-after coastal destinations, where the lifestyle and natural beauty outweigh fluctuations in property prices.
The latest data from Lloyds Bank highlights the enduring appeal of coastal living, with Salcombe emerging as a prime example of the desirability of waterside properties. Despite the decrease in average property prices, Salcombe continues to attract buyers seeking the quintessential coastal lifestyle. The town’s picturesque setting, coupled with its range of amenities and recreational opportunities, reinforces its status as a sought-after destination for property investment and leisure.
While the average property price in Salcombe has experienced a decline, it remains a coveted location for individuals seeking a coastal retreat or investment opportunity. The town’s enduring appeal, characterized by its scenic beauty and vibrant community, transcends short-term fluctuations in property prices. As buyers continue to seek out desirable coastal properties, Salcombe stands as a testament to the enduring allure of waterside living.
“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,” she elaborates. “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.”
Additionally, she highlights the broader socio-economic challenges faced by certain coastal regions, emphasizing the need for a multifaceted approach to address housing affordability issues and promote sustainable community development.
Jacqui Courtier, Propertymark’s regional executive for Devon and Somerset, commented on the region’s popularity: “The South West of England has become one of the UK’s most sought-after destinations, drawing in visitors and new residents with its stunning coastlines and vibrant communities. While this recognition is well-deserved, it brings both opportunities and challenges for our local area.”
“The increased demand for property has naturally driven up prices, posing challenges for local buyers. It’s important to address this concern, but we must also recognize the broader benefits. The region’s popularity boosts local industries, such as tourism, retail, and hospitality, leading to economic growth, job opportunities, and improved services.”
“Despite the challenges, the influx of visitors and residents contributes to the overall prosperity of our communities, highlighting the importance of balancing growth with maintaining the unique character and affordability of the region.”
“As we navigate through this period of growth and change, it’s crucial to maintain the essence of our local communities while embracing the opportunities arising from increased popularity.”
The average cost of coastal homes stands at £293,710, slightly down by 4% from 2022 but up by 48% compared to a decade ago. In specific areas like Margate in the South East and Amlwch in Wales, coastal property prices have more than doubled over the past ten years to £309,049 and £255,189, respectively.
Interestingly, all ten of the least expensive coastal locations are situated in Scotland. Rothesay, on the Isle of Bute, offers the most affordable coastal properties with an average price of £101,477, representing a 30% decrease compared to 2022.
