Southwold in Suffolk is the UK’s strongest seaside holiday home investment of the past decade, according to data from Alto, with property values up 94% from £231,000 in 2016 to £448,000 in 2026. That performance outpaced the wider market.
Dorset’s Sandbanks, a coastal enclave known for its high-end homes, took second place with a 93% rise, from £665,000 to £1.28m. Saltburn-by-the-Sea in North Yorkshire came third after prices climbed 75%, from £129,000 to £227,000.
The figures come from Alto, a property management software provider connected to more than 6,000 estate agents across the UK. Around 35% of UK estate agents use the platform, which covers sales, lettings, property management and client accounting, and Alto says users save an average of 10 hours a week on paperwork.
The company shortlisted the most popular coastal holiday home hotspots and identified the ten where prices rose fastest over the decade. Rental values have risen by similar levels in those locations.
The top ten holiday home investment locations
Croyde in Devon placed fourth, with prices up 68% from £440,000 to £741,000, followed by West Wittering in West Sussex, where values rose 63% from £599,000 to £977,000. Cornwall supplied two entries: Padstow in sixth, up 60% from £443,000 to £711,000, and Falmouth in seventh, up 59% from £226,000 to £360,000.
Burnham Market in Norfolk gained 56%, from £457,000 to £715,000, while Margate in Kent rose 54%, from £202,000 to £312,000. Salcombe in Devon completed the ten with a 53% increase, from £540,000 to £829,000.
“Seaside holiday homes can still be a great investment if you pick the right place,” said Riccardo Iannucci-Dawson, chief executive of Alto. “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.”
