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The Cost of Beach Huts

November 21, 2023
Hut insurance

Looking to purchase a beach hut on one of the sandy shores of the UK? Read our guide to make sure you have all the costs covered including beach hut insurance, before your purchase.

A set of three colorful beach huts at Paignton, Devon, UK on a sunny day.

Investing in a beach hut in the UK can be a rewarding venture both personally and financially, but it’s essential to approach the purchase with a clear understanding of the market, the ongoing expenses, and the practical considerations. Below is a detailed guide with clearly defined points to consider when navigating the cost of beach huts across different areas in the UK.

Market Prices and Influencing Factors

1. Price Spectrum: Beach hut prices vary widely from as low as £5,000 to more than £500,000. Factors such as location, proximity to amenities, and local demand significantly influence these prices.

2. Average Cost: The current average price of a beach hut in the UK is about £39,382.

3. Premium Locations: Areas like Dorset have some of the most expensive beach huts, with prices averaging £123,424 due to their desirable coastal settings.

4. Affordable Options: More budget-friendly beach huts can be found in places like Little Hampton in West Sussex, where prices start at around £20,000.

5. Price Trends: Prices are on the rise, with some areas witnessing a 101% increase in beach hut costs year over year.

Additional Financial Considerations

1. Insurance: Owners need to secure beach hut insurance, considering the rebuilding cost and value of contents.

2. Maintenance and Upkeep: Regular maintenance, including repainting and repairs due to weather exposure, should be budgeted for every few years.

3. Licence Fees and Rates: An annual licence fee is typically paid to the local council, and business rates apply as beach huts are classified as non-domestic.

4. Tax Implications: Potential capital gains tax may be due if the beach hut is sold at a profit.

Practical Aspects of Ownership

1. Amenities: Beach huts often lack running water, electricity, and toilets, making the proximity to communal facilities an important factor.

2. Usage Restrictions: Most beach huts cannot be used for overnight stays unless they are freehold, which are rarer and more expensive.

3. Leasehold vs Freehold: Leasehold beach huts are common and may have residency requirements; freehold options offer more freedom but come at a higher cost and are less common.

Investment Potential

1. Value Retention: Beach huts generally retain value well, particularly with the growing trend of staycations in the UK.

2. Rental Income: Owners can potentially earn significant income by renting out their huts during peak seasons, with some earning up to £5,000 a year.

Decision-Making Process

1. Research: Thorough research on location, amenities, and associated costs is crucial before making a purchase.

2. Legal Considerations: Understand the differences between leasehold and freehold and the terms set by local councils.

3. Personal Objectives: Consider if the beach hut meets your personal goals, whether it’s for family leisure, investment returns, or a combination of both.

4. Emotional Value: Beyond financials, consider the sentimental worth and the traditions that a beach hut represents.

In summary, while the allure of owning a beach hut is strong, it’s imperative to carefully consider the initial investment against ongoing expenses and potential rental income. With due diligence and an appreciation for the nuances of the beach hut market, buyers can find a property that not only brings joy but also serves as a sound investment.


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