Estate agent figures gathered by Alto software have pinpointed the ten best places in the UK to purchase a coastal holiday home as an investment.
In first place came Southwold, the picturesque Suffolk town, where values climbed 94% over ten years, from £231,236 to £448,106, comfortably outperforming the wider market.
Sandbanks in Dorset, often described as a millionaires’ playground, took the runner-up spot after a 93% jump, with prices going from £664,655 to £1,282,565.
Prices in Saltburn-by-the-Sea, North Yorkshire, increased by 75%, from £129,363 to £227,022, earning the resort third position.
Behind the figures is Alto, a supplier of property management software linked with more than 6,000 estate agents around the UK.
Every one of the country’s most popular coastal hotspots for holiday homes was shortlisted, and the ten where values grew quickest across the past ten years were then singled out.
Across these ten locations, rents have climbed at comparable rates.
Full details of the data and methodology used to compile the list can be found on the Alto website.
Speaking about the findings, Riccardo Iannucci-Dawson, chief executive of Alto, said: “Seaside holiday homes can still be a great investment if you pick the right place.
“The best reason to buy a seaside home is to have a wonderful place where you can relax with your loved ones and earn good rental returns when you are not there.
“They can be a fantastic investment if you look at the data carefully and pinpoint where prices and rental yields have grown most over the last decade.
“Southwold narrowly beat the more famous Sandbanks because its percentage rise was greater but all the locations in the top ten would make good investments and will provide a good return in the long-term.
“Prices shot up for seaside homes during Covid as people looked to escape cities for a simpler life.
“There was a correction after that and holiday home taxes in the form of punitive second home council tax charges in some popular areas have also affected the market.
“But global warming is making many parts of Europe too hot in the summer and British coastal resorts are an increasingly attractive option for many holidaymakers.
“Alto data allows agents to analyse long-term sales and rental data, going back decades, to highlight the very best holiday home investment opportunities.”
Designed with estate and letting agents in mind, Alto is the UK’s number one AI CRM software, bringing sales and lettings, client accounting and property management together on one platform.
Some 35% of estate agents in the UK rely on the system, with users cutting an average of 10 hours a week from their paperwork.
UK’s top performing seaside holiday locations over the last decade
- Southwold, Suffolk: up 94% from £231,236 in 2016 to £448,106 in 2026
- Sandbanks, Dorset: up 93% from £664,655 to £1,282,565
- Saltburn-by-the-Sea, North Yorkshire: up 75% from £129,363 to £227,022
- Croyde, Devon: up 68% from £439,975 to £740,747
- West Wittering, West Sussex: up 63% from £598,788 to £977,282
- Padstow, Cornwall: up 60% from £443,396 to £711,458
- Falmouth, Cornwall: up 59% from £226,217 to £360,332
- Burnham Market, Norfolk: up 56% from £457,050 to £715,452
- Margate, Kent: up 54% from £202,276 to £312,195
- Salcombe, Devon: up 53% from £539,950 to £828,630
