Seafront property 'not restricted by credit crunch'

The credit crunch is doing nothing to end the boom in seafront property prices, it has been stated.

Andy Smith, managing director of London-based1st Property Investment, said the market tends to be dominated by top-end purchases, with most buyers being bolder and wealthier than average and moving for lifestyle reasons.

He stated: "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."

Recent years have seen house prices in seaside towns soaring.

Halifax figures produced in May this year showed that 18 such locations experienced house price increases of over 100 per cent between 2002 and 2007.

The fastest growth between 2006 and 2007 occurred in the Cornish town of Rock at 28 per cent, the lender stated.

Those struggling with the cost of homes in such locations may decide to use the self build option to get on the ladder for less.