A town known as the gateway to one of Scotland’s most rural areas has been revealed as the most affordable place to buy a home by the sea in Britain.

Campbeltown, in Argyll and Bute, was pinpointed by a Bank of Scotland report looking at the price of coastal properties across the UK.

The average home in the town, which was once Scotland’s whisky capital with 34 distilleries, is said to be £103,078.

Campbeltown is followed by Rothesay on the Isle of Bute, (£111,764), Millport on the Isle of Cumbrae (£114,008) and Port Bannatyne, also on Bute, (£115,421).

These three island communities on Scotland’s west coast are nestled within the sheltered waters of the Firth of Clyde.

The price of these rural and island properties is in stark contrast to St Andrews in Fife, which was found to be the most expensive town to by a seaside home.

Campbeltown is on the shore of Campbeltown Loch (Image: Getty Images/EyeEm) St Andrews, home of the Old Course and the R&A golf club, as well as one of the best universities in the UK, remains a place where only the most wealthy househunters can shop.

The average home in the historic town now costs £458,381, up 8 per cent in the past year.

Meanwhile the report found that a town on the Firth of Clyde has seen the biggest jump in property prices out of any coastal hotspots.

House prices in Gourock, in Inverclyde, have risen by almost a quarter in 2024, with the average cost of a home up 24% to £175,660.

The annual Bank of Scotland report on coastal property keeps track of house prices across the country and the UK as a whole.

In Scotland, the average price of a home by the sea now stands at £187,727 – up 2% year on-year.

Gourock, on the Firth of Clyde (Image: NQ) That contrasts with Great Britain overall, which saw prices of coastal homes fall slightly by 1% over the last year, with an average price tag of £295,991.

Over the last five years prices in Scottish coastal towns are up by 25%, compared to a British average of 18%.

The charming harbour town of Anstruther – nestled in the East Neuk of Fife and perhaps best known for its award-winning fish and chips – saw the biggest increase in Scotland over this five-year period, adding £91,294 (+52%) to the price of the typical property.

The report found that the housing market in Scottish coastal locations worth around £1.9 billion last year.

St Andrews, which appears at the top of the list, is one of Scotland’s most famous and desirable towns.

Residents benefit from beautiful beaches and a thriving cultural scene, with boutique shopping and fine dining options also on their doorstep.

When it comes to the property market, it remains one of the most sought-after locations in the country.

However, the town’s compact size and conservation policies limit new developments, keeping the supply of new homes tight.

The large student population and year-round tourism also fuel the local buy-to-let market.

St Andrews boast beautiful beaches (Image: NQ) Other towns making the list include North Berwick, in East Lothian, where the average property as said to be worth £419,723

A short train ride from Edinburgh, the town was is known for its sandy beaches, golf courses, and vibrant arts scene.

Completing the top three is Dunbar, also in East Lothian, where the average home was a slightly-more affordable £292,073.

Ayr saw the biggest number of transactions (963), followed by Inverness (915) and Greenock (626).

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Isla Benzie, Head of Bank of Scotland Mortgages, said: “Scotland’s coastline offers something for everyone – from the historic streets of St Andrews to the island charm of Rothesay and Millport.

“While some of the most sought-after locations continue to command premium prices, there are still plenty of affordable options for buyers willing to look beyond the traditional hotspots.

“Coastal property prices in Scotland have risen over the past year, reflecting strong demand and the enduring appeal of seaside living. But it’s also important to recognise the diversity of these communities – while some are thriving, others face real challenges linked to housing affordability, seasonal economies and access to services.”