Oh, I do like to be beside the seaside: Coastal homes for less than £400k in top 10 holiday hotspots with price growth potential

With the promise of longer (maybe) sunshine-filled days ahead, now is the perfect time to explore the picturesque coastal towns you've always dreamed of buying a little holiday home by the sea in.

But with a three per cent stamp duty premium now levvied on second homes and several popular holiday destinations charging extra council tax on weekender properties, it's important to make your investment pay off in other ways.

The latest research from Savills pinpoints the top 10 emerging prime coastal locations, where price growth has been strong but there is the promise of future price growth for those who buy now.

“Our emerging prime locations are those that have seen the strongest levels of house price growth over the past five years, while still offering relative value (i.e. don’t command a huge premium) when compared to their county averages," says Frances Clacy, research analyst at Savills.

"Because of this, they still have more capacity for further growth in the future."

BUY NOW IN BRIGHTON

Brighton tops the list as the most expensive of the 10 emerging prime coastal locations, according to the latest research from Savills.

Yet, the pebble beach hotspot still represents fairly good value for Londoners. House prices in Brighton average £400,000, almost £85,000 less than the capital's average.

For this price, properties range from three-bedroom family houses on the outskirts of the city to centrally located two-bedroom flats in iconic Regency buildings.

Nicknamed "London by the Sea", Brighton remains a popular choice with exiting Londoners and commuters as trains to London Victoria take less an hour and direct services to London Bridge and St Pancras are also on offer.

Brighton has seen 43.2 per cent house price growth over the last five years.

But there's further room for growth because the premium for living in the famously hipster city is just 17.9 per cent above the county average. Savills research says a 25 per cent price premium for an area suggests there's less potential for significant price growth.

BIGGEST PRICE RISE POTENTIAL

Christchurch in Dorset is the next most expensive location on the list, with 30 per cent growth, taking average property prices to £377,000.

The historic market town is a six-minute drive from the popular beach at Mudeford and also has the New Forest on the doorstep.

It has a good variety of shops, bars and restaurants and the mainline station has a regular service to London Waterloo, Southampton and Bournemouth for commuters.

Here, £375,000 will land you a three-bedroom detached house with renovation potential. At 19.1 per cent higher than the county average there is again room for further price growth.

However, the bigger potential for house price growth in Dorset can be found in Poole, where houses are selling for an average of £308,000 — which is 2.5 per cent less than the county average.

Clacy says: "The emerging prime locations are unlikely to be the traditional and well-known coastal hotspots but rather those that are seen as ‘up and coming’.

"This is particularly true for locations which still offer a discount in comparison to the counties in which they sit, such as Seaford, Burnham-on-Crouch, Stubbington and Poole.”

Thanks to its lovely beaches and micro-climate said to offer warmer winters and more sunshine-filled days than the UK typically enjoys, Poole is traditionally a second-home and retirement hotspot.

However, it is becoming increasingly popular with graduates choosing to stay in the area, after leaving Bournemouth's many universities according to Keith Fensom, head of Savills in Canford Cliffs.

He says: "A lot of people are attracted by the good quality of life and water sports, such as kitesurfing, are a big draw.

"There’s also an increasing number of people who choose to live in the area and either work from home or commute to London once or twice a week."

Source: Savills research using Land Registry

The biggest property price rise over the past five years was in Burnham-on-Crouch in Essex where a 52 per cent increase has taken prices to an average of £325,000, for which you can buy a four-bedroom detached house.

There is a whole range of properties on offer though, from one-bedroom flats to 16th-century homes on the water.

"Burnham-on-Crouch has the feel of a large village or small town with lots of independent shops bars and restaurants," says Stephen White, head of Savills Chelmsford.

"It's also a sailing mecca, popular with boat owners. However, because it’s on the East Coast house prices drop significantly compared to better connected areas, such as Chelmsford City, and therefore it also attracts buyers looking for better value properties."

On the Dengie peninsula, Burnham-on-Crouch can seem a little isolated but it also has direct train links to London Liverpool Street taking just over an hour.