Seaham has highest house prices rise

May 26 2008 by Ben Guy, The Journal

A DURHAM seaside town has seen the highest rise in house prices rises for coastal areas in the whole of the UK.

The average cost of a house in Seaham has risen by 193% to £126,348 over the past five years, a survey carried out by the Halifax has shown.

The town was one of 18 to experience a rise of more than 100% for the period.

Easington District and Seaham Town councillor Jim Haggan said the numbers did not come as a surprise.

He said: "I think it is because of the future of the town. We have the film studio and a number of other new projects, which is all good.

"And of course house prices in general have gone up over that period, so it is a continuation of that.

"I think in the future there will be even more people wanting to live here – we are really optimistic."

But Coun Haggan added that it was important to provide enough affordable housing to allow young people and key workers to live in the area.

Earlier this year The Journal reported how the luxury Seaham Hall Hotel had been sold to the Von Essen group of hotels for an undisclosed multi-million pound sum.

Despite the rises, the average price of a house in Seaham remains relatively low to other coastal areas surveyed.

For example the most expensive seaside town in the country is Sandbanks, Dorset, where average prices top £628,014.

And even further up the North East coast, in Alnmouth, an area that the survey said had seen a 17% rise in the past year, the average property will set a buyer back £227,120.

But prices are more reasonable in Blyth, which the survey found to be the second most expensive UK seaside town, where the average house costs £117,504 – a nine per cent increase in the past year and a rise of 95% over the five-year period.

Gordon Edwards, managing director of Halifax Estate Agents, said he now expected some decline in seaside town property prices, but added that they would always attract a premium to their inland counterparts.

He said: "Seaside towns again saw good house price growth last year.

"Properties in quite a few seaside towns have more than doubled in price over the past five years.

"Many seaside towns trade at a significant premium to the house prices in the surrounding inland towns.

"We now expect some decline in property prices in seaside towns.

"Whilst they are not immune to wider market developments, there will continue to be a premium for coastal properties as people will always like to live by the seaside."