Second annual fall in beach hut prices provides investment opportunity

They were the post-pandemic must-have, but the latest research shows that beach hut prices have fallen for the second consecutive year across the UK’s most sought-after coastal locations, offering opportunities for buyers who wish to invest in a seaside escape.

The average value has fallen by 9.8% over the last year, following a 19.6% decline the previous year, according to Yopa, which analysed the average asking price of beach huts across eight of the UK’s most popular coastal counties.

However, despite the recent declines, such huts are still worth 7% more than they were in 2022.

The price decline follows a 37.1% surge in beach hut prices in the year after the final Covid lockdown, followed by a 7.9% increase a year later.

Regional analysis

West Sussex has seen the largest annual decline in beach hut asking prices, down 35.1% over the last year alone. Norfolk has seen the second largest reduction (-13.0%), followed by Essex (-12.2%) and Hampshire (-12.0%). Meanwhile, in Kent prices have fallen by 5.5% and East Sussex has seen a 2.9% fall.

Dorset and Suffolk are the only two towns to have witnessed an increase in average beach hut values, up by 2.8% and 6.6% respectively.

Dorset also continues to boast the strongest long-term market performance, with beach hut values 71% above their 2022 average, compared to 31% for East Sussex, 15% for Essex and 14% for East Sussex.

Coastal locations below their 2022 average asking prices for beach huts include Norfolk (-29%), Hampshire (-10%) and Suffolk (-8%). 

Lifestyle purchases

Verona Frankish, CEO of Yopa, said: “The beach hut market experienced the same surge in demand that we saw across the wider housing market in the wake of the pandemic, as buyers placed far greater value on lifestyle purchases and making the most of the UK’s coastline.

“Whilst demand for beach huts remains strong, they’re ultimately a discretionary purchase and, with confidence across the wider property market remaining somewhat subdued, it’s no surprise that we’ve seen values ease over the last couple of years.

“That doesn’t mean the market has lost its appeal. In fact, values remain higher than they were before the post-pandemic boom, meaning many owners have still enjoyed healthy long-term growth.

Frankish said the trend offered an opportunity for investors looking for a seaside investment. “For buyers, the recent correction presents an opportunity. After two years of falling prices across much of the market, there is far better value available today than there has been for some time, making it an attractive point to invest ahead of the next phase of the market cycle.”