Top 10 Coastal Investment Locations in the UK (ordered by price to income ratio) 10
10: Largs, Scotland
- Average house price: £165,539
- Projected gross annual revenue as a private rental: £6,876
- Private PTI ratio: 24.1
- Projected gross annual revenue as a holiday let: £8,939
- Holiday-Let PTI ratio: 18.5
- Flood risk: Moderate
The most affordable option to get on the coastal property ladder, Largs has a longer PTI but remains a viable investment due to strong demand, its only moderate flood risk, and the low property prices in the area.
“Over recent years, PTI ratios have climbed significantly, with property prices remaining high while rental yields, though rising, have not necessarily kept pace," explained Cliff Ward, a holiday-let insurance expert at Pikl. "This shift means that property investors must take a long-term view. Where once a five-year investment cycle could yield a return, today’s buyers may need to commit to at least 15 years before seeing a full return, assuming minimal gaps between tenants or a consistent holiday-let occupancy rate of around 60%.
He added, "For those eyeing coastal investments, flood risk is an increasingly critical factor. Climate change is already influencing weather patterns, and the long-term viability of a property must be considered alongside its initial appeal. Locations with lower flood risk, such as South Shields and Dunbar, can offer greater predicted long-term security.
"In contrast, areas like Morecambe and Bognor Regis, while more affordable, can present greater exposure to flood-related challenges. Investors should carefully assess climate resilience and factor in rising insurance costs when making decisions.
"Coastal properties may be attractive for rental yields and lifestyle appeal, but with extreme weather events expected to intensify, long-term sustainability must be a key consideration.”
