The cost of houses in seaside towns in the south-east of England are expected to soar as City workers increasingly look to the coast for a second home.

According to the estate agents Spicerhaart, prices in the town of Broadstairs in Kent could go up by as much as 40 per cent over the next three years as a direct result of the increased demand from City commuters.

Part of the appeal of the town lies in the fact that the new Channel Tunnel Rail Link will cut the average commuting time to around one hour, around half the current time.

Commenting on the local market, Donald Crockart, a branch manager at the estate agent Spicer McColl, said: "We expect to see property prices rise substantially in the next few years, particularly in the hotspot areas of North Foreland, the Chessboard and the Eastern and Western Esplanades."

However, the local experts also revealed that three bedroom semi-detached properties in Broadstairs are still available for as little as £165,000.

Around 245,000 people in the UK now own second homes, a 36 per cent increase from 2002, according to Knight Frank.