Beach huts, like these near Poole, Dorset, are very popular

One beach hut, at Mudeford Sandbank in Dorset, is currently on the market for around �140,000.

Website Propertyfinder.com said beach huts, many of which do not have electricity or running water, have become overpriced.

The group said modest property in coastal locations were often better value in terms of cost per square foot.

Recently, a stretch of dune in Abersoch, North Wales, with planning permission to build a 12ft by 10ft hut on it sold for �63,000.

Maintenance problems

The website said in popular areas a typical hut of around 100 sq ft could sell for �50,000, equivalent to �500 per square foot, and even in less sought-after seaside locations huts could sell for up to �300 per square foot.

But a modest property in coastal locations could cost much less per square foot, the group said, with houses and flats costing less than �200 per square foot on average.

Propertyfinder.com added people buying houses or apartments would not have the maintenance troubles a beach hut presents and the properties would be easier to insure.

Jim Buckle, managing director of the website, said: "I wouldn't suggest it's a foolish man who builds his house on the sand - there are some fantastic spots around our shores for huts.

"But it's clear you get much better value for money if you buy a holiday home made of bricks and mortar as your seaside pied a terre."