HOTEL prices in UK tourist spots are increasing as more cash-strapped Britons choose to holiday at home.

According to a survey by Hotels.com, rates in Bournemouth rose by seven per cent last year while prices in Brighton went up by two per cent.

Rooms in the Lake District cost more than in London where prices leapt by 10 per cent to £114.

The biggest rise was Norwich’s 38 per cent, while the UK’s most expensive place to stay was St Andrews in Scotland, at £162.

Overall UK hotel prices rose by two per cent to an average of £83.

David Roche from Hotels.com said budget-conscious Britons had taken more breaks at home last year, adding: “This led to well above average price rises but consumers could still find great value.”

Andy Woodland, chairman of Bournemouth Area Hospitality Association (BAHA) said: “Hotel prices here are coming back up to where they should be.

“When the recession began hoteliers panicked and were happy to sell rooms for whatever price they could get.

“Now business is more consistent they are asking for more realistic prices.

“Easter bookings are coming in quite well. Hopefully Christmas credit card bills have been paid off and people have more disposable income.

“Opening up the seafront earlier this year has helped with lifts and deckchairs available to accommodate elderly visitors.”

Paul Spencer, general manager of the Royal Bath hotel, said: “We saw an increase in occupancy by over five per cent last year and that trend continues but our rate has remained steady.

“It concerns me that the average rate of £71 that Bournemouth demands is £14 cheaper than Brighton, £7 cheaper than Portsmouth and £23 cheaper than Newquay because that makes our great resort look discounted. How is that being addressed?”

• A survey by BDRC Continental, the UK’s largest independent research consultancy, has revealed that 48 per cent of Britons are considering the UK for their main holiday this year, compared with 39 per cent last year and just 29 per cent in 2009.