22 Aug

Seaside properties continue to prove popular

Seaside properties continue to prove popular

Living by the coast has always tended to increase the value of a home, but some prime areas can demand prices up to 71 per cent higher than inland properties.

Research by Knight Frank shows locations along the Dorset, Devon and Cornwall coast are very popular with buyers and this has seen significant growth in value of the past two decades.

Using data from the Land Registry, it shows Croyde in Devon has seen an average outperformance of 4.1 per cent.

Other areas in the South West include Rock, Salcombe, Padstow and Falmouth, which have outperformed other properties in the area by at least two per cent each year since 1995.

The limited numbers of seaside properties, as well as interest from second and holiday-home buyers is likely to have boosted demand, although the recent changes in stamp duty may have some impact.

In April 2016, the government introduced a higher rate of stamp duty on those owning more than one property, but the impact could be limited in the long-run.

“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,” explained the Knight Frank report.

“Over the longer term we believe transaction volumes will rise once the additional stamp duty is fully priced into the market.”ADNFCR-1222-ID-801823926-ADNFCR

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