Coastal property prices rise by up to 103 per cent

Property prices in seaside resorts are booming with some towns enjoying increases of almost four times the national average.

Property prices in seaside resorts are booming with some towns enjoying increases of almost four times the national average.

The highest rise over the past two years has been in Padstow, Cornwall, where average property prices have shot up by 103 per cent compared to the regional average for the South West of 42 per cent. The average increase in England and Wales was 28 per cent, according to Halifax Estate Agents.

Other Cornish towns also recorded large increases, with Penzance, Mevagissey and Porthleven all seeing rises in excess of 70 per cent.

The Welsh coastal towns also performed well, with prices in Pwllheli, Gwynedd, up 85 per cent and those in Cardigan, Ceredigion, up 75 per cent.

The most expensive seaside town in England and Wales is Sandbanks, Dorset, where the average property costs over £400,000. Prices in this exclusive enclave have been relatively stable over the past two years, increasing just 25 per cent.

Meanwhile, the average property in the Lincolnshire resort of Cleethorpes, a mere snip at £69,893, is still 47 per cent higher than it was in 2001.

Up the coast at Scarborough, prices have increased by 42 per cent to an average of £98,523. The port town of Workington, Cumbria, saw the smallest increase of the 100 towns surveyed, with prices rising by just 8 per cent.

Norman West, the landlord of the Cornish Arms in Padstow, said the town was booming: "Lots of people have been coming in and the whole area, not just Padstow, is being transformed with all the money that is coming with them."

But the rises were a double edged sword, he said. "I would love to live right down by the water but I can't because the prices are prohibitive. It is worse for the young people born round here. It is very difficult for them to get a start on the property ladder."

TOP 10 INCREASES

Increase in past two years, %