The average home in the exclusive Dorset enclave has fallen 3% (£33,595) compared to last year – though it still puts Sandbanks at the top of the coastal property league, which is dominated by locations in the South West.
Salcombe in Devon came second in the list with average house prices of £826,159.
In third place was Padstow in Cornwall where the average property will set you back £715,974.
Across Britain, the average price of a home by the sea now stands at £295,991 – down 1% year-on-year. Despite the dip, prices in coastal towns are up by 18% over the past five years.
Most affordable coastal towns
Your Mortgage Awards 2024/25: winners revealed
Sponsored by Your Mortgage Awards
Scotland dominates the list of most affordable coastal towns, with all 10 of the cheapest spots located north of the border.
Top of the list is Campbeltown, on the Kintyre Peninsula, where the average home costs just £103,078 – down 11% in the past year.
It’s followed by Rothesay (£111,764), Millport (£114,008) and Port Bannatyne (£115,421) – all island communities on Scotland’s west coast, nestled within the sheltered waters of the Firth of Clyde.
Outside of Scotland, the least expensive location in England is Newbiggin-By-The-Sea in the North East, while in Wales it is Prestatyn.
Amanda Bryden, head of mortgages, Lloyds, said: “Coastal living continues to hold a special appeal – whether it’s the lure of sea views, sandy beaches, or a slower pace of life. Our latest research shows the most exclusive seaside spots – like Sandbanks – still command premium prices.
“In some of the UK’s most desirable coastal towns, average prices have dipped slightly over the past year. But, over the longer term, values remain significantly higher – especially in the South West, where demand from lifestyle movers continues to shape the market.
“It’s also important to recognise that not all coastal areas share the same fortunes. Some seaside towns face significant challenges, from seasonal economies to a lack of affordable housing for local people.”
