‘Coastal towns are at a crossroads. The risks are real, but so is the potential’

There is something deeply embedded in the British psyche about being beside the sea. Our coastal towns have long been places of escape, nostalgia and community. But behind the postcard image lies a more complex reality – one that we increasingly urgently need to address.

Through Milligan’s partnership with Willmott Dixon, we recently convened a series of coastal regeneration roundtables with local authorities from across the UK. From Blackpool to Dover, Torbay to North Yorkshire, the message was clear: coastal towns are facing a unique and systemic set of challenges – but also a rare moment of opportunity.

The data paints a stark picture. Coastal town populations are declining, with nearly a quarter of residents aged 65 or over. High streets have seen an 8% net loss in commercial space. The surge in footfall during peak seasons – of often more than 22%, with tourists sometimes making up over 50% of visitors in key areas – presents distinct challenges for coastal towns. This influx of visitors often differs significantly in demographic compared with local residents, complicating efforts to design an optimal mix of commercial offerings that appeal to both groups.

Tourism remains highly seasonal, and housing affordability is being squeezed by second homes and short-term lets. Add to that the pressures of climate change, digital exclusion and underfunded infrastructure, and it is no wonder many councils feel they are swimming against the tide.

Yet what struck me most in these discussions was not the scale of the challenge but the consistency of ambition. Across the board, there is a shared vision for economic diversification, place-based regeneration and a more inclusive, sustainable future.

One of the most compelling opportunities lies in rethinking tourism. As the UK climate warms and international travel becomes more expensive and environmentally fraught, we are likely to see growing appetite for domestic holidays. This shift could be a lifeline for coastal economies, but only if we are ready to meet it.

That means asking some hard questions. Are our coastal towns attracting the right demographic for long-term economic resilience? Are we offering the kind of experiences today’s travellers – especially younger, values-driven ones – are looking for? And are we learning from the best of international resort models, where tourism is integrated with local culture, sustainability and year-round appeal?

We need to move beyond the binary of “bucket and spade” or “second home retreat” and think about how coastal destinations can become hubs for wellness, creativity and climate-conscious living. That might mean investing in green infrastructure, curating cultural programming or reimagining seafronts as spaces for both locals and visitors to thrive.

Much has been made of the so-called “Airbnb problem” – the impact of short-term lets on housing affordability and community cohesion – but perhaps we need to reframe the conversation.

Airbnb and similar platforms have succeeded not just because of price or availability, but because they’ve tapped into a deeper consumer desire: for convenience, flexibility and a sense of discovery. Rather than resisting this shift, we should be asking what it teaches us about modern expectations and how we can design places and policies that respond.

Could we create planning frameworks that support locally owned, design-led accommodation with community benefit baked in? Could we use digital tools to make it easier to plan a visit, book experiences or navigate transport? The goal shouldn’t be to turn back the clock but to shape the future on our own terms.

One of the most encouraging outcomes of our roundtables was the appetite for peer learning and joined-up thinking. Councils are eager to share best practice – on masterplanning, funding and private sector partnerships – and to build a stronger collective voice.

But collaboration can’t stop at the public sector. If we are serious about coastal regeneration, we need to bring in developers, investors, cultural leaders and – crucially – local communities. That means listening as much as leading, and being honest about the trade-offs involved.

At Milligan, we believe in regeneration that is rooted in place, powered by partnership and designed for long-term impact. That is why we are committed to continuing these conversations, surfacing new ideas and helping turn ambition into action.

Coastal towns are at a crossroads. The risks are real, but so is the potential. With the right investment, imagination and collaboration, we can create places that are not just resilient, but remarkable.

Let’s not wait for another funding round or policy shift. Let’s start building the future our coastal communities deserve – one that honours their heritage, embraces innovation and welcomes the world.