During the 1980s we saw the introduction of a new trend as more and more people took the option of package holidays overseas. This had a detrimental impact to the UK holiday market and the cost of properties on the coast. However, there is no doubt that more and more people are now looking to the UK for their holiday breaks taking in the array of beautiful scenery from the Highlands of Scotland to the south coast of England. As a consequence, there is growing demand for holiday resort properties which is being reflected in price movements.
The range of property prices across the U.K.’s coastal towns and villages varies enormously from nearly £600,000 at Salcombe in Devon down to just over £100,000 at Saltcoats in Ayrshire. This ensures that there is literally something for all investors looking towards coastal towns and taking advantage of holiday lets.
Over the last 12 months we have seen significant growth in property asset values in areas such as Grange-over-Sands in Cumbria which saw prices increase by 10.6% to just short of £274,000. The situation is even more buoyant on the south coast where property prices in Margate, made famous by the Only Fools and Horses comedy series, increased by 12.5% with the average house now costing £202,276. Even if the UK economy was to take a dip in light of the recent economic volatility it is likely more people would actually look towards UK-based holidays as opposed to overseas.
Holiday lets have been in the news of late with some local councils concerned that investment in some of the U.K.’s coastal towns is pushing property prices too high. This is certainly a hot topic because in the more difficult economic times are these councils rejecting the investment of those looking towards holiday lets? Is this simply a case of trying to bring local property prices back within the reach of first-time buyers? Are councillors forgetting the impact inward investment has on the local economy of these coastal towns and villages?
Some councils have actually introduced laws banning the purchase of second homes for those not living in the area. Whether they will live to regret this particular action remains to be seen because there is a whole lot more to this situation than purely and simply pushing local property prices higher.
If you look at the U.K.’s coastal towns and villages at first glance it may be difficult to pinpoint which ones have the best potential in the longer term. One issue which is synonymous with strong property investment in these holiday areas is the receipt of government investment. So, it may be worthwhile doing some research to see which areas of the UK attract the most government investment and then comparing and contrasting prices (as well as rental yields) to see which ones offer the best value?
Despite the continuous flow of doom and gloom from some in the media do not automatically assume there are no attractive long-term property investments out there.