LYME Regis is one of the most expensive seaside towns in Britain.

A new study shows that across the country, house prices have increased by a third in the country's seaside towns- and Lyme Regis has been ranked seventh overall, with an average price of £343,604.

During the last 10 years, the average house price in seaside towns rose by 31 per cent- or £49,207- equivalent to £410 per month.

One explanation for the increase is people buying properties in the area as second or holiday homes.

New mayor of Lyme Regis Owen Lovell said the news was 'not surprising' but that high property prices drive young people out of the town.

"The problem when prices are through the roof is that it drives a wedge between our young people and their ability to stay in the town. It's unfortunate but I don't know how we might address this. People have looked for holiday homes in the lower end of the market and that has driven property prices up. It makes it impossible for young people to buy anything."

However, Halifax, which conducted the research, says there is a marked north-south divide in property values in seaside towns, with all 10 of the most expensive seaside towns in southern England, and seven in the south west alone.

Sandbanks, in east Dorset, came in second in the top 10 with an average price of £614,726.

The figures are based on Land Registry crude average prices for the 12 months to February.