HOUSE prices in seaside towns have soared compared to their inland neighbours, according to a new report.

Weymouth, Lyme Regis and Poole are among the resorts profiting from the boom in coastal property.

Much of the interest comes from second-home owners but there has been a marked rise in the number of people re-locating to seaside towns from cities.

Research from mortgage lender Halifax revealed that homeowners were prepared to pay extra to live by the sea after houses by the shore outperformed others in their region, according to a study over the last three years.

Three-quarters of the 100 seaside towns surveyed had increased at a faster rate than the regional average in that period.

And prices in 16 coastal towns had more than doubled since 2001.

This news gives a boost to seaside homeowners in Dorset after it was revealed only last week that the tide may be turning towards a buyers market, with prices stalling across the county in recent months.

Halifax claims the most expensive coastal towns are found in the South West and property prices in Dorset's 'millionaire's row', Sandbanks in Poole, are leading the way.

The average home there costs £386,140 - beating the second most expensive town of St Mawes in Cornwall by more than £100,000.

But Sandbanks saw the smallest price rise out of all the places surveyed, with growth of only 20 per cent over the past three years, compared to an average increase of 62 per cent across the South West. The report shows nine out of the 10 most costly towns to live in are located in the South West and all command average property prices of more than £235,000.

The group said homes with a sea view in the South West and Yorkshire had performed strongly over the last three years and towns in these regions accounted for eight of the top 10 biggest prices rises for coastal towns.

Managing director of Halifax estate agents Jane Pridgeon said: "Homeown-ers are clearly prepared to pay a premium for living beside the sea.

"The most expensive towns are located in the South West but, increasingly, Welsh and Yorkshire seaside locations are recording significant price increases as well."

The biggest leap in house prices was recorded in Padstow, Cornwall, where the average property price rocketed by 144 per cent in three years.