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Sea Views in Great Britain Come With 29% Premium

Felixstowe, on the Suffolk coast, had the highest mark-up for a water vista

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Port Isaac in Cornwall, England

Nigel Pavitt/Getty Images
Port Isaac in Cornwall, England
Nigel Pavitt/Getty Images

Property buyers looking to invest in seaside towns in Great Britain can expect to pay a 29% price premium for a home with sea views, according to a report Thursday from Rightmove.

The national average asking price for a home with a sea view in a beach town is £304,702 (US$396,319), compared to £236,070 (US$307,062) for a home without one—a difference of more than £68,000 (US$88,449)—the property website found.

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A sea view is undoubtedly a hot commodity but with less than 10% in seaside towns boasting a sea view, a lack of supply is further driving up the price that sellers can ask, Rightmove said in the analysis of homes priced under £1 million.  

The largest premium can be found in the town of Felixstowe, on the Suffolk coast in the East of England. Buyers in the area can expect to pay an average of £392,063 (US$510,365) for a sea view, compared to £248,987 (US$324,117) for a property without one, a 57% premium.

Overall asking prices in the town have gone up by 45% over the past five years, compared to a national average increase of 27%, the report said.

"The regeneration of the seafront in recent years and some new luxury developments being built have pushed up house prices here, especially for homes that offer the prestige of a sea view," said Steve Scott, partner at Scott Beckett Estate Agents in Felixstowe, in the report.  

"We’ve had interest from some home-hunters who initially looked at more expensive areas like Southwold, but who now realize they can get more for their money here," he added.

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The most expensive town for properties with a sea view was in Hove in East Sussex, where average prices reached £481,826 (US$627,096). Asking prices in south coast town have been driven up over the past five years by Londoners moving out and commuting in to the capital, the report said.

Broadstairs in Kent followed, where the average asking price is £456,041 (US$593,536).

"The local housing markets in these seaside towns around Great Britain vary significantly," said Miles Shipside, Rightmove director and housing market analyst, in the report. "But in all areas those with a sea view offer a financial advantage to home owners looking for a buyer possibly wanting to retire or use as a holiday home."

It's not just seawater that commands a premium. London buyers will pay an average of 14.6% more for a home along the 27-mile stretch of the river Thames that snakes through the capital, according to Savills.