Retirees and families priced out of the UK’s holiday home hotspots can find much better value for money and potential for price growth if they look at neighbouring towns and villages, according to new research by Placebuzz.
The property listings website analysed prices over the last five years in five of the most popular holiday home locations in the UK to reveal cheaper alternatives.
Areas like Whitstable, Southwold, Lyme Regis and Tenby are considered future hotspots that offer holiday home buyers with much better value and the opportunity to benefit from rising prices in the future, Placebuzz said.
With a 3% stamp duty premium still payable on second home purchases and a growing trend for popular destinations to charge extra council tax on second homes, it’s more imperative that buyers make a savvy long-term investment.
Suffolk – Current hotspot: Southwold vs. Future hotspot: Lowestoft.
The picturesque seaside town of Southwold is home to the Adnams Brewery, pretty beach huts and the seasonal retreat of professionals and artists with property prices to match averaging £650,588.
However, a bus ride away is Lowestoft – 62% cheaper and the first place to see sunrise in the UK. Its Blue Flag golden sandy beach is popular and nearby Oulton Broad offers year-round water sports and riverside restaurants.
West Dorset/East Devon – Current hotspot: Lyme Regis vs. Future hotspot: Seaton
Famous for its historic Cobb and harbour Lyme Regis is a quintessential seaside town with a growing seafood restaurant reputation. Its jazz festival, carnival and regatta are annual events and property prices have shown solid growth of 29% in the last five years.
Buyers looking just along the coast at the prime seaside town of Seaton can spend over a third less (37%) and still enjoy stunning sea views, as well as the splendour of the Jurassic Coast.
Wales – Current hotspot: Tenby vs. Future hotspot: Cardigan
While Tenby is a haven for sailing fans, it also has an attractive sandy beach and dunes and is set within the UK’s only coastal national park. Prices have risen over 15% in the last year, making properties in Cardigan on the north Pembrokeshire coast seem a steal at £251,436 on average – 24% cheaper than Tenby.
Cardigan’s historic quayside has been renovated and boasts a thriving arts and music culture. There is also a choice of 10 sandy beaches within easy reach.
Cornwall – Current hotspot: Padstow vs. Future hotspot: Wadebridge
Located on the North Cornwall coast, the harbour town of Padstow is a ‘mecca’ for holiday home buyers, home to seafood chef Rick Stein and the golden sand beaches of Trevone, Harlyn and Constantine.
Straddling the River Camel five miles upstream, though, is Wadebridge, home to the popular Camel Trail for walkers and cyclists, which has also established itself as a lively hub of the north coast. Prices are typically 8.7% cheaper, meaning holiday home buyers can avoid the Padstow premium while being just a short drive from its many amenities.
Kent – Current hotspot: Whitstable vs. Future hotspot: Herne Bay
Known for its Oyster festival and beachside shacks, Whitstable features cottage-lined streets, restaurants and bijou shops.
Just next door is Herne Bay with its endless sandy beach, impressive pier and growing number of independent shops, micro pubs and lobster smoke house. Prices here have risen a whopping 33% over the last five years compared to just 9% in Whitstable – but it’s still around 5% better value.
Neil Tillott, business director at Placebuzz, commented: “Many of us will be dreaming about buying a bolthole in our favourite staycation destination as we head off on our summer holidays this year, but often these hotspots don’t represent the savviest investments.”
“Tourist magnets such as Padstow and Southwold are highly desirable but they’re also prohibitively expensive. By looking just a few miles down the road, buyers will find towns and villages that have huge potential and access to the same natural amenities but which are yet to attract the Michelin-starred restaurants and boutique shops of their sought-after neighbours.”
He concluded: “Here you can buy a home for significantly less – sometimes as much as 50-60% – and with much greater potential for future capital growth.”