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We do like to be beside the seaside

Catherine Deshayes

Properties on the seafront are unlikely to be harmed by the credit crunch as owners tend not to need to borrow

A great view can increase the price of a property by as much as 30%. Living by the seaside is a common dream, and property prices in coastal towns reflect that popularity.

According to the Halifax, the average property price in 24 seaside towns was at least 20% higher than the county average last year, and these towns are expected to remain largely unaffected by the credit crunch.

The buildings society also found that over the longer term there were 18 coastal towns that saw increases in price of over 100% between 2002 and 2007. 

This is because buyers of seaside properties in the UK tend to be older and wealthier than others so do not need to borrow large amounts of money to fund the purchase.

Andy Smith, Managing Director of 1^st Property Investment, said that those who buy property on the seafront make their purchases principally for lifestyle reasons.

"They don't rely on mortgages, these places are driven by people who buy because they choose to, it's not something they have to do," added Mr Smith.

The South Downs area of England is proving a big draw, with the seaside town of Eastbourne being the most sought after town in the UK in May, according to the latest monthly search figures from property website PropertyFinder.com.

Brighton was at number 13 in the country, and other south coast towns such as Southampton and Bournemouth were also in the top fifteen.

"Eastbourne appeals to the retirement community who are relatively unaffected by the mortgage freeze as older buyers tend not to need to borrow," said Nicholas Leeming, director of PropertyFinder.com.

"Eastbourne is also well within commuting distance to London and appeals to younger families seeking a seaside location but wanting a London income," he added.

The news follows an earlier release from the organisation which finds Brits are willing to pay substantially more for seaside property when compared to urban areas.