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Is the Beach Hut Bubble About to Burst?

Writer's picture: Juszt CapitalJuszt Capital

Updated: Oct 4, 2024


Beach Hut


Ah, the beach hut! A classic slice of British seaside charm that has delighted families for generations. These beloved little boltholes have been a treasured escape, with some families holding on to them like heirlooms. But there are whispers that the once-booming market for these quaint huts may be cooling off.

 

Many beach hut owners are fiercely loyal to their slice of paradise, often stating they'd part with their home before giving up the hut! And why not? Renting out these colourful gems during the summer months has even become a sustainable side business for some. It’s no surprise that many renters are repeat customers—once you’ve found the perfect spot by the sea, why change it?

 

Still, there are signs that the tide might be turning. Pre-pandemic, the idea of owning a beach hut was the dream for many—a quiet retreat with the sound of waves and a sea breeze at your doorstep. But lately, a new trend has emerged. More and more people are trading in the stationary charm of a beach hut for the flexibility of a campervan. And when you consider that a campervan can cost significantly less than a premium beach hut (which can hit jaw-dropping prices of up to £280,000 in some hotspots!), it’s easy to see the appeal. Plus, a campervan lets you explore different seaside views whenever the mood strikes.

 

A Changing Market

According to property site Rightmove, the once sky-high sales of beach huts have slowed since their peak during the pandemic. While the demand has steadied, prices remain at those inflated levels, especially in popular spots like Southwold in Suffolk. Here, beach huts are practically family heirlooms, passed down through the generations, with little to no sign of prices dipping any time soon.

 

Yet, in other areas like the Southwest and Southeast, more huts have become available, which has helped balance the market. However, the question looms—are the younger generations as enchanted by the idea of a traditional beach hut as their elders? Or are they more likely to embrace the adventurous spirit of a campervan or holiday parks?

In places like Mudeford Spit in Dorset, beach huts are still seen as luxurious, fetching prices that would make your eyes water—up to £480,000! But not all huts are priced so high. In Lincolnshire, for instance, you could snap up a little retreat for as little as £7,500 at auction. So, there’s still a range of options, depending on your budget and location.

 

The Future of Beach Huts

One of the challenges facing beach huts is the unpredictable nature of our weather. Climate change has made the summers hotter and wetter in equal measure, leaving some seaside property owners nervous. The ferocious winds and tidal surges that swept three beach huts into the sea at Castle Beach in Falmouth this April were a chilling reminder of the risks involved.

 

In fact, some councils are already warning that the increasing costs of repairs and maintenance—caused by more frequent extreme weather—could threaten the very existence of their beloved beach huts. In North Norfolk, for instance, the council has considered whether continuing to lease huts will be viable in the future if adverse weather conditions persist.

 

Despite these concerns, the love for beach huts hasn’t completely faded. Many councils still have waiting lists that stretch on for years, and those lucky enough to secure one often rent them out to holidaymakers. Sheringham and Cromer, for instance, offer weekly hut rentals during peak summer for around £215, though the wet weather last year did dampen demand a bit.

 

Holding on to Tradition

So, what’s the outlook for the humble beach hut? While the market may have slowed, and some are trading in their huts for campervans, plenty of families are still clinging to their seaside treasures. When sales dip, this tight-knit community of hut owners tends to hunker down, weathering the storm until sunnier days come again. After all, a beach hut is more than just a shelter—it’s a slice of nostalgia, a beloved retreat, and a tradition many aren’t willing to give up anytime soon.

 

The beach hut bubble may not have burst just yet, but it seems the winds of change are blowing. Whether it's a temporary squall or a permanent shift, only time will tell!



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