A Suffolk seaside town has been named the best place in the UK to buy a holiday home after property values rose by 94% in a decade. Southwold topped a new ranking of Britain's coastal property hotspots, with average house prices climbing from £231,236 in 2016 to £448,106 in 2026.
The increase means homes in the popular seaside resort have almost doubled in value over 10 years, according to figures compiled by property management software provider Alto. The company analysed property sales data from estate agents using its platform, comparing average values in 2016 and 2026 across some of the UK's most popular coastal holiday home destinations.
Top 10 Coastal Hotspots
Southwold narrowly beat the exclusive Dorset resort of Sandbanks, which recorded a 93% increase over the same period. Average property values there rose from £664,655 to £1,282,565, making it the most expensive location in the top 10. Third place went to Saltburn-by-the-Sea in North Yorkshire, where prices increased by 75%, from £129,363 to £227,022.
The remaining locations in the top ten included Croyde in Devon, where values climbed 68%, and West Wittering in West Sussex, which recorded growth of 63%. Cornwall also featured twice, with Padstow taking sixth place after a 60% increase and Falmouth seventh with a rise of 59%.
Burnham Market in Norfolk came eighth, with prices up 56%, followed by Margate in Kent, where values increased by 54%. Salcombe in Devon completed the list with a 53% rise. Every location in the top ten recorded property price growth of more than 50% over the decade.
Market Drivers and Outlook
Rental values have also increased by broadly similar proportions across the ten destinations, according to Alto. Riccardo Iannucci-Dawson, chief executive of the company, said Southwold had beaten the better-known Sandbanks because its percentage increase was slightly higher.
He said: "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."
Mr Iannucci-Dawson said the market had experienced a significant surge during the Covid pandemic as people looked to leave cities in search of more space and a different lifestyle. He added: "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."
He also suggested climate change could make British coastal destinations increasingly attractive to holidaymakers as temperatures rise in parts of Europe. He said: "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."
Southwold, on the Suffolk Heritage Coast, is known for its pier, traditional beach huts and historic lighthouse. The town is also home to Adnams brewery and has become a popular destination for visitors looking for a traditional British seaside holiday.
However, the figures relate to average property values in selected holiday home destinations rather than guaranteeing future investment returns. Alto said its ranking was based on the ten coastal locations where average property values had increased by the greatest percentage between 2016 and 2026. Saltburn-by-the-Sea was the most affordable destination in the top ten, with an average property value of £227,022, while Sandbanks was the most expensive at more than £1.28 million.
