The upmarket Cornish resort of Rock was the top-performing seaside town for property price rises in 2007, a new report has found.

According to the Halifax Estate Agents Seaside Town Review, house prices in the town increased by 28 per cent last year, from £282,097 in 2006 to £361,838.

After Rock, the next best performing seaside towns in 2007 were Sandbanks in Dorset (22 per cent annual rise) and Fowey in Cornwall (20 per cent).

Furthermore, Sandbanks, the home of Portsmouth Football Club manager Harry Redknapp, continues to be the most expensive seaside town in England and Wales, with an average house price of a whopping £628,014.

Property prices in Sandbanks have increased by 77 per cent since 2002.

As well as recording the biggest annual rise, Rock became the second most expensive seaside town in 2007.

Milford on Sea in Hampshire is third with £351,859, followed by Padstow, the Cornish home of TV chef Rick Stein, in fourth on £348,352.

Nine of the ten most expensive seaside towns are in the south-west of England.

Gordon Edwards, managing director of Halifax Estate Agents, said: "Seaside towns again saw good house price growth last year.

"Properties in quite a few seaside towns have more than doubled in price over the past five years. Many seaside towns trade at a significant premium to the house prices in the surrounding inland towns.

"We now expect some decline in property prices in seaside towns. Whilst they are not immune to wider market developments, there will continue to be a premium for coastal properties as people will always like to live by the seaside."

The Halifax Estate Agents Seaside Town Review tracks house price movements in 97 seaside towns in England and Wales.