A home by the sea comes with a 71% price premium compared to a similar property just a mile inland, according to the latest summertime workings from Knight Frank.
Britain’s resort counties – Devon, Dorset and Cornwall – have seen higher property price inflation than wider market averages for the last two decades, as second home buyers and retirees swell domestic demand and makes short supply even more acute. But a few towns and cities in the South West have really seen prices really soar in the last 20 years.
Using data from the Land Registry, based on actual sales volumes going back to 1995, Knight Frank has calculated the annual price performance of individual coastal markets relative to the average price increase across the three counties.
North Devon surfers’ paradise Croyde (pictured above) tops the price inflation table over this period, punching in an average annual out-performance of 4.1%. While that may not sound overly dramatic as a one-off stat, it means that property prices in Croyde have risen by 122% more than than the Cornall/Devon/Dorset average in the last 20 years. Croyde has seen prices more than quadruple (+432%) since 1995, compared to +310% combined across the three local authorities.
Favourite prime coastal markets including Rock, Salcombe, Padstow and Falmouth have all out-performed as well, by at least 2% annually since 1995.
No article on the property market is complete without a mention of stamp duty. And that’s particular true of resort and seaside markets following the “additional homes” surcharge announced in 2015’s Autumn Statement. Knight Frank predicts that in the short-term, “it may take time for the tax to be absorbed, especially in a market where there are notable levels of discretionary purchases. In turn, this may have an impact on pricing – potentially providing opportunities for committed buyers. Over the longer term, it is thought that transaction volumes will rise once the additional stamp duty is fully priced into the market.”
Image of Croyde by Becks (CC by SA 2.0)