COWES WEEK ranks alongside Wimbledon, Ascot and Henley on the classic English summer calendar. But after the champagne set has moved on, people are realising the potential for island living within a 20-minute ferry hop of the city amenities of Southampton. From there, fast train links to London offer possibilities for an intriguing boat-rail commute.

Having grown from a Tudor fishing village at the mouth of the River Medina, Cowes became renowned as a shipbuilding centre before its ascent to global yachting mecca in Victorian times. Marine industry remains part of the heritage of the town. The recent arrival of one of the world’s leading luxury yacht builders, Palmer Johnson, at the redeveloped Venture Quays is also a mark of faith in the future dominated by the £250 million East Cowes Project. This ambitious plan aims to rejuvenate a part of town that historically attracted the island’s old money but which in recent years had taken on a slightly dog-eared air alongside vintage charm.

In West Cowes, meanwhile, the owners of The Hambrough hotel in Ventnor are planning a five-star boutique hotel in an attempt to replicate its success. Galleries and design outlets are slowly displacing souvenir shops along the High Street, though not yet enough to keep a certain tiredness from hanging in the air.

A dearth of decent restaurants is a problem that only time and changing demographics are likely to alter. Lugley’s, Murrays fish restaurant and The Terrace Restaurant at Osborne House bring quality to the Cowes dining table, but the town needs more places catering for a growing influx of sophisticated mainlanders choosing the island as a weekend getaway.

Above the High Street, overlooking the Solent, Northwood House and Park provides Cowes’ main green oasis. The beautiful John Nash-designed clock tower of St Mary’s Church is a striking landmark, surrounded by streets where elegant Georgian houses mix with colour-ful cottages. Waiting to catch the 19th-century chain ferry across the Medina to East Cowes, I admire riverfront warehouses and tiny pastel-coloured cottages. Across the river, East Cowes reveals fine Victorian red-brick terraces.

Yet beneath the patina of wealth and pockets of fine architecture, the Isle of Wight is also among the poorest areas in England. For the housing market, this has resulted in a split between London prices for the boating set and less distinctive but significantly cheaper options. Prestige waterside homes between West Cowes and the neighbouring village of Gurnard can go for up to £2 million, and command weekly rents of £5,000 during major events. The Pimento Group, meanwhile, is putting finishing touches to the most high-profile recent development on the island at Number One The Parade – 25 stylish water-front apartments set behind a curvy façade of white stone and glass, with deep balconies offering grandstand sea views over the regatta starting line. Priced up to £1.2 million, many have already been snapped up, with the latest to go a penthouse for £950,000.

But buyers are changing. “Previously it was just the sailing fraternity who paid top prices,” says Charles Spence, the agent handling The Parade development. “But everyone has been waiting for Cowes to come up. The growth market in the last five years has been executives looking for second homes rather than yachtsmen.”

Marinus is another upmarket seafront development, with 48 flats priced from £300,000 to £350,000. A short walk from the harbour bustle, Yvery Court on Castle Road offers a selection of two to four-bedroom modern interpretations of Georgian villas from £375,000 to £800,000.

Those without yacht-owning incomes needn’t panic. The estate agent Bob Lancaster pulls a fistful of affordable possibilities from his files, starting at just £135,000 for a two-bedroom semi in East Cowes. A similar house with an extra bedroom and a prized Solent view is £190,000, although prices rise to £350,000 for a four-bedroom East Cowes detached.

FORSALE

What you get: Four bedrooms, four bathrooms, three reception rooms, kitchen, terrace, garage. 2,500 sq ft in all.

Where it is: In the heart of the old town, a short walk from the Southampton ferry.

Upside: Designed by John Nash, built in 1855 and renovated in 2002. It has views over the Solent, including the start line.

Downside: A terrace, but no real garden.

Cost: £865,000.

Contact: Christopher Scott, 01983 242121.

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