Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Prices of Mudeford beach huts surge

Mudeford beach huts

The prices for the holiday homes have rapidly increased over the past 20 years due to demand far outstripping supply

The prices of Britain’s most expensive beach huts are on course to break through the £400,000 barrier due to the huge demand for them by rich staycationers.

The wooden cabins at Mudeford in Christchurch have always commanded premium prices but they are now selling for more than people pay for a four bedroom house in many parts of the country.

There are nearly 360 huts on the Mudeford sandbank that is so remote it requires a 20 minute walk to get to, a ride on a land train or a short ferry ride across Christchurch Harbour.

The huts have no running water, mains electricity or toilets and washing facilities are in a communal shower block.

Yet the prices for the highly desirable holiday homes have rapidly increased over the past 20 years due to demand far outstripping supply. And demand has surged to a new high since the start of the pandemic last year.

The huts can be slept in from April to October and they generally sleep up to six people, with four mattresses on a mezzanine level in the roof and the seating areas downstairs doubling as extra beds.

Buyers are attracted to the remote location as cars are banned.

Because it is not possible to secure a mortgage for the beach huts, would-be owners have to be cash buyers. They also have to stump up about £4,500 a year to the local council in fees.

In 2002 the huts were selling for £73,000 but by the following year, one broke the six-figure mark for the first time, selling for £100,000.

By 2005 they were up to £135,000, but following the credit crunch in 2008 they dropped back to just £90,000.

This drop didn’t last long though and by January 2012 a hut was on the market for £145,000 and just six months later one sold for £170,000.

In July 2014 one was up for £225,000 and a few weeks later another went on for £270,000.

By January 2018 a hut had sold for £295,000 and another hit the £300,000 mark in March that year.

Last year there was a bidding war over a hut that sold for £325,000.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.