Southwold in Suffolk has recorded the highest property price growth among UK seaside locations over the past decade, according to data compiled by property management company Alto.
The North Sea coastal town saw prices increase 94% from £231,236 to £448,106 between 2014 and 2024, placing it at the top of Alto’s analysis of seaside property markets.
Sandbanks in Dorset ranked second with a 93% price increase, rising from £664,655 to £1,282,565 over the same period. Saltburn-by-the-Sea in North Yorkshire came third with a 75% increase from £129,363 to £227,022.
Post-pandemic market shifts
Riccardo Iannucci-Dawson, Chief Executive at Alto, noted that coastal property prices experienced significant increases during the Covid-19 pandemic as buyers sought alternatives to urban living. “There was a correction after that and holiday home taxes in the form of punitive second home council tax charges in some popular areas have also affected the market,” he said.
The data comes as the UK property sector continues to adjust following pandemic-era demand patterns. While some estate agencies face governance challenges, coastal markets have demonstrated varying levels of resilience depending on local factors.
Investment considerations
According to Iannucci-Dawson, seaside properties can generate returns through both capital appreciation and rental income. “Southwold narrowly beat the more famous Sandbanks because its percentage rise was greater, but all the locations in the top ten would make good investments and will provide a good return in the long-term,” he stated.
The analysis focused on locations where both property prices and rental yields showed growth over the ten-year period. However, investors must now factor in additional costs, including increased council tax charges for second homes implemented in several coastal authorities.
The data provides a retrospective view of seaside property performance, though market conditions have shifted since the peak of pandemic-driven demand. Current buyers face a different landscape with higher borrowing costs and regulatory changes affecting second home ownership.
