Tourist-Driven Growth in Coastal Towns: Why UK Investors Are Looking Seaside Again
In recent years, the UK’s coastal towns have experienced a significant revival—not just as charming tourist spots but as property investment hotspots. With increasing government attention, infrastructure investment, and projects like Eden Project North, areas once seen as secondary markets are now being recognised for their potential to deliver long-term capital growth and impressive yields, particularly for serviced accommodation and holiday lets.
Let’s explore what’s driving this surge and where the smart money is going in 2025.
Eden Project North: The Game-Changer for Morecambe
Morecambe is undergoing a once-in-a-generation transformation. The upcoming Eden Project North, scheduled to open in 2026, has positioned this traditional seaside town as one of the UK’s most exciting investment locations. Backed by over £100 million in funding, including £50 million from the UK government, the project will transform the Morecambe Bay waterfront into a world-class ecological and educational attraction. The Eden Project North is expected to attract over 750,000 visitors annually, creating hundreds of jobs and significantly boosting local tourism and hospitality.
Rental demand: Surge expected in both short-term (tourism) and mid-term (project workers, seasonal staff).
Serviced accommodation opportunities: High potential for landlords, especially with limited hotel capacity.
Capital growth: Early investors in Morecambe have already seen above-average price rises since Eden North’s funding was confirmed in 2023.
Lytham St Annes & Blackpool: A Tale of Two Markets
Lytham St Annes offers a different flavour of seaside investment. Known for its leafy streets, high-end cafes, and famous golf courses, this coastal town caters to an affluent demographic and provides a slower-paced alternative to the neighbouring Blackpool. It's a popular destination for summer festivals like Lytham Festival, and its strong local economy has supported rising property values. For investors seeking premium short-term let opportunities, especially during the peak seasons, Lytham is a refined choice.
Higher average household income than neighbouring Blackpool.
Popular golf tourism and Lytham Festival, drawing in an affluent crowd.
A stable rental market with room for premium serviced apartments and family holiday lets.
Blackpool, on the other hand, is reinventing itself with help from a substantial £300 million investment programme. This includes the Blackpool Central leisure development and regeneration schemes funded through the Towns Fund. While traditionally seen as a mass-market destination, Blackpool is making strides to attract a more diverse visitor base while enhancing its digital and cultural infrastructure. For investors, its low property prices and high tourist footfall present one of the UK’s best opportunities for high-yield short-term lets.
£300M+ of investment through the Towns Fund and Blackpool Central project.
New attractions, digital industry incentives, and rail improvements.
Ideal for cash-rich investors seeking strong yields and low entry prices.
Anglesey & North Wales: Natural Beauty Meets Modern Infrastructure
Anglesey and the wider North Wales coastline have become a magnet for eco-tourists, adventure seekers, and families looking for scenic getaways. Improved infrastructure like the A55 Expressway and ferry connections to Ireland have made the island increasingly accessible. Anglesey’s natural landscapes, combined with seasonal attractions and watersports, make it an ideal setting for holiday lets. Additionally, its designation as part of the Holyhead Freeport is set to stimulate further economic and employment growth, potentially driving more mid-term rental demand.
Improved A55 infrastructure and ferry access to Dublin.
Government-backed tourism investment zones.
Seasonal yield peaks for serviced accommodation in hotspots like Beaumaris and Rhosneigr.
Bristol: The South West’s Tourism Tech Hub
While not a traditional seaside town, Bristol’s harbourside has become a major tourist draw and a core part of its £1.5 billion tourism economy. Its combination of maritime history, modern street culture, and year-round events draws both holidaymakers and corporate travellers. With a strong presence in tech, aerospace, and education, Bristol has become a centre for ‘bleisure’ tourism—business travellers extending their stays for leisure. This year-round activity supports high-performing short-term let models, with income potential often exceeding that of more seasonal markets.
Capitalising on year-round business tourism (tech, aerospace, green industries).
Benefitting from student spillover into holiday-let properties.
Seeing a growing ‘bleisure’ travel trend, with weekday corporate guests extending stays.
Hull: Yorkshire’s Underrated Coastal City
Hull has quietly evolved into a coastal city with cultural depth and growing tourism appeal. Since being named UK City of Culture in 2017, Hull has invested heavily in its arts scene and the revitalisation of the Fruit Market and marina districts. Visitors are now drawn not just to its maritime heritage but also its growing food and music festivals. For investors, Hull offers one of the lowest entry prices among regional cities in the UK, making it attractive for first-time landlords and those exploring low-risk strategies in short-term or holiday lets.
A regenerated marina and Fruit Market district.
Increasing popularity of heritage tourism and events.
Low entry prices—one of the most affordable cities for first-time landlords entering the short-let space.
Aberdeen: Coastal City with International Appeal
Aberdeen may be best known for its links to the North Sea oil industry, but it’s also seeing growth in cruise tourism, eco-tourism, and cultural interest. The city has been investing in sustainable tourism as part of a broader transition away from fossil fuel dependence. It attracts international business travellers, offshore workers, and students, creating steady demand for short-term and mid-term stays. Its dramatic coastline, castle trails, and increasing number of events also provide seasonal boosts to holiday-let occupancy and rates.
A push for sustainable tourism tied to the city’s rugged coastlines and castles.
Seasonal festivals and increasing cruise traffic.
Mid-term stay potential from renewables sector employees and students at the University of Aberdeen.
Investor Takeaways: Why Coastal Towns Are Reclaiming the Spotlight
Final Word: Coastal is Back
The pandemic-era trend of “staycations” has evolved into a more mature movement—one that values heritage, eco-tourism, local culture, and well-connected regional locations. Whether you’re seeking short-term let potential in Blackpool, sustainable tourism-linked growth in Morecambe, or a long-term coastal bet like Anglesey or Aberdeen, the UK coastline is no longer just a holiday destination—it’s a smart investment.
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