The Most Profitable Coastal Property Investment Locations in the UK

Despite recent fears that property may no longer be a lucrative investment due to recent budget announcements and concerns around second homes requiring planning permission, a data study has revealed that there are still plenty of profitable areas across the UK for those looking to take the leap.

According to the new study by data experts at Pikl Insurance, UK coastal property continues to be a hot ticket for investors and home buyers alike, with many lesser known locations still being extremely profitable in 2024.

Pikl analysed data from Rightmove and AirDNA to find the average Price to Income Ratio (PTI Ratio) for 50 of the UK’s most popular coastal destinations. The PTI Ratio reveals the number of years it takes for the projected gross rental income from a property to cover the average initial purchase price, meaning the lower the number, the better the investment. 

From the data the experts were able to reveal the top 10 most profitable locations, which can be found below. 

Top 10 Coastal Investment Locations in the UK (Ordered by Price to Income Ratio)

1. Portree, Scotland 

Average House Price: £206,248 Projected Gross Annual Revenue: £52,400 Price to Income Ratio: 3.94 years

Portree is the capital of the Isle of Skye and is a magnet for tourists thanks to its dramatic scenery, colourful harbour, and proximity to the Trotternish Ridge. The relatively low price of property here, combined with healthy rental yields, makes Portree a strong contender for investment. With a PTI Ratio of only 3.94 years, Portree is the best coastal location in the UK for property investors. 

 

2. Tobermory, Scotland  

Average House Price: £177,969

Projected Gross Annual Revenue: £35,700 

Price to Income Ratio: 4.99 years

Tobermory is the main town on the Isle of Mull and is known for its brightly painted houses and relaxed atmosphere. The island is a haven for outdoor enthusiasts with walking, cycling, sailing, and kayaking all on offer. With a lower price point than Portree, Tobermory offers another attractive option for budget-conscious investors.

 

3. Rothesay, Scotland 

Average House Price: £109,828

Projected Gross Annual Revenue: £21,900 

Price to Income Ratio: 5.01 years

Rothesay is the largest town on the Isle of Bute and is a popular destination for short breaks. The island has a rich history and boasts stunning scenery, with rolling hills, sandy beaches and dramatic cliffs. Rothesay offers the most affordable property on our top 10 list and could be a good option for investors looking for a high yield.

 

4. Nefyn, Wales 

Average House Price: £241,464 

Projected Gross Annual Revenue: £48,000 

Price to Income Ratio: 5.03 years

Nefyn is a small village on the north coast of the Lleyn Peninsula in Wales. It’s known for its beautiful beach and excellent water sports facilities. The village is surrounded by some of the most dramatic scenery in Wales, making it a popular choice for walkers and hikers.

 

5. St Andrews, Scotland 

Average House Price: £478,222 

Projected Gross Annual Revenue: £82,900 

Price to Income Ratio: 5.77 years

St Andrews is best known for being the Home of Golf and is a popular destination for tourists all year round. The town also has a prestigious university and a beautiful historic town centre. While property prices in St Andrews are higher than other locations on this list, the potential rental income is also strong meaning the PTI Ratio is only a fantastic 5.77 years and comes in at number 5 on our list.

 

6. Gardenstown, Scotland 

Average House Price: £154,438 

Projected Gross Annual Revenue: £26,000 

Price to Income Ratio: 5.94 years

Gardenstown is a traditional fishing village on the Banffshire coast. The village has a picturesque harbour and a relaxed atmosphere. It’s a haven for walkers, cyclists, and wildlife enthusiasts, with bottlenose dolphins regularly spotted off the coast - making it the perfect place for staycation visitors that want an ‘abroad’ feel on a budget.

 

7. Portmeirion, North Wales 

Average House Price: £179,583 

Projected Gross Annual Revenue: £28,200 

Price to Income Ratio: 6.37 years

Portmeirion is a unique Italianate village located on the Dwyfor Estuary in North Wales. The village was designed by architect Clough Williams-Ellis and is a popular destination for tourists. With its distinct pastel-coloured houses and beautiful setting, Portmeirion offers a taste of the Mediterranean on the North Wales coast, and has a hefty £28.2k projected gross annual revenue because of it.  

8. Robin Hood’s Bay, North Yorkshire 

Average House Price: £350,528

Projected Gross Annual Revenue: £51,400

Price to Income Ratio: 6.82 years

Robin Hood’s Bay is a charming fishing village on the North Yorkshire coast. With its narrow cobbled streets, red-roofed cottages and sheltered beach, the village is a popular destination for tourists. The surrounding area is also home to the North York Moors National Park, offering stunning scenery and opportunities for outdoor activities. While property prices are higher here, the potential rental income is still healthy, leaving a respectable PTI Ratio of 6.82 years.  

9. Appledore, Devon

Average House Price: £397,778

Projected Gross Annual Revenue: £56,000

Price to Income Ratio: 7.1

Nestled on the North Devon coast, Appledore is a charming village steeped in maritime history. Its picturesque harbour and golden beaches attract tourists seeking a relaxed seaside escape. However, Appledore offers more than just stunning scenery. A thriving art scene and a strong sense of community make this a desirable location for both holiday lets and long-term rentals. Despite a higher average house price, Appledore boasts a healthy projected gross annual revenue, resulting in a PTI Ratio of 7.1, making it an attractive option for investors seeking strong returns.  

10. Blackpool, Lancashire

Average House Price: £157,538

Projected Gross Annual Revenue: £21,900

Price to Income Ratio: 7.19

Blackpool, with its iconic illuminations and lively promenade, is a classic British seaside resort.  While Blackpool itself offers a range of entertainment options, its location on the Fylde Coast provides easy access to areas of outstanding natural beauty.  Investors are drawn to Blackpool's affordability, with the average house price sitting considerably lower than the national average.  While the projected gross annual revenue is lower compared to some other coastal locations, Blackpool's PTI Ratio of 7.19 indicates the potential for healthy rental yields.

 

Why are UK coastal homes so popular in 2024?

Cliff Ward, a holiday-let expert at Pikl, says: “There are a number of reasons why coastal property remains so popular in the UK. Staycations have become increasingly popular since the pandemic. Owing to this reason alone, many people are looking for second homes that they can enjoy themselves and rent out to holidaymakers for the rest of the year as an additional source of income. Coastal locations also tend to have beautiful scenery, good weather, and plenty of amenities, making them desirable places to live permanently too. 

Whilst investors should consider their own budget, risk tolerance, and investment goals before making a decision, it’s safe to say that the coastal locations in our top 10 list offer fantastic investment opportunities with strong price to income ratios."