HOUSE prices in Dorset's seaside towns have soared as city dwellers relocate to the coast and people buy second homes in the county.

A survey published today reveals that prices are spiralling in resorts across the country as more people opt for a life beside the seaside.

Average property prices in Weymouth and Swanage have shot up by 52 per cent in the last two years while Lyme Regis has seen a 29 per cent increase over the same period, according to the report from mortgage lender Halifax.

A house in Weymouth will set you back £163,375 on average, rising to £200,000 in Lyme Regis and £204,192 in Swanage.

Sandbanks, near Poole, is the most expensive coastal address in the county, with the average house costing £403,500.

Local estate agents agree with the study's findings but say prices have stabilised in recent months.

Piers Campbell, a sales negotiator for Mann Countryside in Weymouth, said: "Lots of people have been buying second homes here and people with families are moving here because they want to get out of the city. People are retiring here as well, because it's a nice area.

"In the last two years I have seen a rise of between 35 and 40 per cent in house prices."

Gareth Thomas, assistant valuer at Direct Moves' Weymouth office, believes that the cost of buying property in the Weymouth area is around 50 per cent more expensive than it was four or five years ago.

He added: "We have a high percentage of people coming to us from out of the area."

Jackie Baker, home consultant at Fox & Son in Weymouth, said: "Prices have got quite high down here and I have registered lots of people relocating here.

"They have come for all sorts of reasons - we have had quite a few officers moving to Portland to work at the prisons."

But she added that some sellers have accepted offers below market price during the last month, hinting that the boom may soon tail off.