Revealed! The coastal areas that have seen the biggest house price increases in 2021

A brief summary of the top ten coastal areas in the UK that have seen the biggest increase in average house prices in 2021.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

'For Sale' sign outside of a terraced house in the UK

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Without a doubt, the UK housing market had one of its hottest years in 2021. Stimulated by the Stamp Duty holiday, the market turned into somewhat of a frenzy. This year is likely to be a more normal one for the housing market, but strong buyer demand is set to carry over into 2022. 

With the adoption of the hybrid model of work, some have set their gaze upon more rural areas in an attempt to escape the big city. With its picturesque beaches, the British seaside has captured the attention of homebuyers in 2021. Due to the increased demand, some of these coastal towns and villages have seen a big jump in annual asking prices, resulting in huge price growth.

According to Rightmove, these are the five areas that have seen the biggest house price increases over the past year. 

[top_pitch]

1. Padstow, Cornwall

Alongside homebuyers looking for a change of scenery, Padstow is also popular among holidaymakers. With a few easily navigated harbours, the town remains a yachting haven and a fishing port. Due to high demand among buyers in 2021, the average asking price rose by a staggering 20% in 2021.

This means that the average asking price is now £658,588, up from £548,382. Despite this, with the picturesque scenery and the opportunity to be close to nature right at your doorstep, it is easy to see why Padstow topped this year’s list.  

2. Whitby, North Yorkshire

The next entry takes us from the West Country all the way to North Yorkshire. The impressive remains of Whitby Abbey and the town’s cobbled streets, alongside its lively vibe and rich history, make Whitby a popular tourist destination. Moreover, you can enjoy the two sandy beaches on either side of the River Esk.

If that is not enough, there is a great mix of architecture from different periods – Georgian townhouses, Victorian terraces, stone cottages and contemporary modern homes.

With that in mind, it is no surprise that Whitby has seen an asking price increase of 17%. So you can expect sellers to be asking for an average price of around £254,218 in 2022. 

3. St. Ives, Cornwall 

Venturing back South, we head towards Cornwall again and the sandy beaches of St. Ives. Previously, the town was dependent on its fishing industry, but now the focus is primarily turned towards tourism. The sandy beaches and the favourable conditions make for a desirable location for surfing enthusiasts.

As well as enjoying the town’s beaches, visitors and locals can spend time enjoying themselves in the stylish town centre. This is why the average asking price in the area is now £473,161, an increase of 15% in 2021.

However, if you prefer a house with a sea view, you can expect an average asking price of well over £1 million! 

[middle_pitch]

4. Porthcawl, South Glamorgan

Twenty-five miles away from Cardiff and overlooking the Bristol Channel, Porthcawl is a charming town on the south coast of Wales. If you are looking for that beach life, this small town ticks all the boxes with its seven sandy beaches. And for those that enjoy being close to nature, the Wales Coastal Path offers an opportunity for picturesque walks.

Alongside the amazing scenery, Porthclawl has a great range of cafes, pubs and restaurants, where both visitors and homebuyers could spend time with friends and family. Over the past 12 months, the average asking price in the area has increased by 14% to £307,051. 

5. Mablethorpe, Lincolnshire

East of the Lincolnshire Wolds is the seaside town of Mablethorpe. If you haven’t heard about it, it is because Mablethorpe is a bit of a hidden gem. Set between Cleethorpes and Skegness, the small town offers visitors a huge sandy beach with all the traditional attractions for children and families. There are plenty of cafes and restaurants, as well as a cinema, an aqua park, a crazy golf course and a seal sanctuary.

For those looking to climb the property ladder, there is a wide range of bungalows, contemporary houses and period terraced properties. Despite the asking price increase of 13%, you can expect to pay an average of £173,612 to buy a property here.  

The rest of the top ten areas that have seen the biggest price increase

We’ve looked at the five areas with the biggest asking price increases, according to Rightmove. Here are the other five options that complete the top 10:

Name 

Annual asking price increase 

Average asking price

Newquay, Cornwall

13%

 £317,846

Filey, North Yorkshire

13%

£214,617

Pwllheli, Gwynedd

13%

£222,607

Brixham, Devon

12%

£299,127

Preston, Paignton, Devon

12% 

£303,684

 

If you’re planning to move in the near future, check out the range of mortgage-related resources we’ve put together to make the process easier.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »