Value of second homes said to be more than £43 billion
The second homes market across England and Wales is worth more than £43 billion, according to research.
Estate agents Yopa said its study indicated that flats were the most common type of second home property across most areas, although terraced homes were most popular in the North East, and detached homes in the east of England, Wales and the East Midlands.
The South West has the most second homes, accounting for 21% of the total, the research indicated.
Across London as a whole there are an estimated 24,880 second homes, worth an estimated £11.6 billion in the current market, said the report.
Robust
Verona Frankish, chief executive of Yopa, said: “Whilst there is a robust number of second homes across all regions of England and Wales, it’s a market that is largely dominated by London and the South West and for two contrasting reasons.
“London is one of the most desirable property markets in the world and attracts a high level of foreign investment, as well as second home purchases for those who desire the professional convenience of a property within the capital that removes the need for a lengthy commute.
“The South West, however, is very much a holiday hotspot with second home purchases driven by the allure of having a coastal bolthole to escape to during the summer months.
“Unfortunately, both regions are home to some of the highest house prices across England and Wales, meaning that those who do have their sights set on a second home purchase are now set to pay considerably more for the pleasure, following the government’s decision to raise second home stamp duty thresholds to 5%.”
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Research for capilists to glee at. Rather know the impact of second homes on local prices, numbers of local young leaving their home areas and the lack of investment in local facilities I enjoy like general entertainment like a cinema, high speed broadband etc cause by these often vacant second home reducing need all year round.
‘The second homes market across England and Wales is worth more than £43 billion, according to research.‘ What does this actually mean? It’s not real money entering the local economy (apart from the estate agent’s commission.). I can see that it inflates house prices, reduces local population and destroys communities but I can’t see where the ‘value’ comes into it.
Young people should leave their home areas to experience life. And if they can’t afford to later live in an area they want to live in then they need to work harder and get a good job so they can move into the area they like. Nothing wrong with 2nd home ownership – people should not be penalised for working hard and getting some spare money to buy homes and then spend money in a holiday area. Or are we trying to discourage people from working hard and live off benefits instead as so many young people today seem to… Read more »
What you seem to forget is that all the extra money spent paying mortgages inflated by a distorted property market is money not being spent in the local economy, supporting local businesses and helping to create more jobs and better paid jobs. It’s straight out of the anti-growth coalition playbook.
In my experience the locals don’t support restaurants, pubs and food shops in tourist areas but are very loyal to Tescos. These locals are a joke.
Perhaps if they weren’t paying inflated mortgages and rents they’d have more money to spend in restaurants, pubs and local food shops.
It’s astonishing that London doesn’t do something about their glut of second homes which are presumably all owned by Russian oligarchs to hide their ill-gotten gains.
Thank God for second home owners as the locals just rush off to Tescos and do t support the tourist industry – yet they want the cheaper houses as it suits their agenda.
Secondhomers aren’t tourists. They’re absentee residents propping up some other local economy most of the time.
What’s needed to support the tourist industry is more high quality hotels and guest houses, and to attract more visitors from more successful economies that haven’t sanctioned themselves.
Let’s hope the recent American love keeps on growing because they can afford Wales.