SALCOMBE has topped the charts as the most expensive seaside town, with house prices reaching on average, £570,378. But could this be driving local residents out?

The results come from the latest research published by Halifax, on the increase of house prices in seaside towns, based on Land Registry sale prices.

Salcombe house prices have increased by 11 per cent over the last five years, from £515,366 in 2008 to £570,378 this year, placing the town second in the top ten of biggest house price increases of seaside towns in the UK.

As a town with one of the highest percentages of second-home owners populating the area, it appears that the rising demand for second homes could be driving up property prices.

Town mayor of Salcombe, Cllr Rob Wheeler, fears this could be having a detrimental effect on local residents. Cllr Wheeler said: 'On one hand we can view this as confirmation that Salcombe's businesses may do well. On the other hand, does it drive out even more local residents?

'The pressure on truly local people and more importantly young people with their quest to find accommodation or a house purchase is now under much greater strain. 

'Never have we seen more testing times for people in need of housing, especially in places such as Salcombe. 

'What a combination this now presents. Among the highest house prices in the country, banks extremely tight on lending mortgage money, jobs scarce or at best only seasonal, it's actually very, very worrying.

'All we can really hope is that the South Hams District Housing Allocations policy just recently adopted, is now South Hams wide and will work to house people locally.

'Also we must trust the localism bill does what it suggests it might and offers greater powers to local parish and town councils through initiatives like Neighbourhood Planning, so that they can somehow deal more successfully with this situation. 

'One thing is certain there's no easy answer to this economic divide.'