Site Navigation

Property & Real Estate channel

Article

Property & Real Estate

Coastal property markets shine as holiday fever hits

A quarter of all UK holiday homes are located in the South West

A quarter of all UK holiday homes are located in the South West

3rd July 2007

Half of all Britons would like to own a holiday home, according to research by property website propertyfinder.com.

The demand for second homes in many parts of the UK is growing fast and with the height of summer approaching, house prices in popular coastal holiday towns like Salcombe and Dartmouth are soaring, the firm said.

A growing number of Britons are choosing to holiday within the UK, rather than venture abroad - and many of these are purchasing a second home, propertyfinder.com added.

Around 500,000 UK households own a second home, and 60 per cent of Britons’ holiday homes are located in the UK.

A quarter of all UK holiday homes are located in the South West, where house prices are already much higher than the UK average.

Locations such as Salcombe and Dartmouth are becoming micro markets - ruled by demand factors independent of those influencing the general market, propertyfinder.com noted.

According to the firm's research, the key factor driving demand for second homes is the growing sense of "green" responsibility in the UK.

Nearly a quarter of people would cut back on flights to help the environment.

This is causing more and more people to holiday within the UK and consequently purchase holiday homes.

Warren Bright, chief executive of propertyfinder.com, said: "Warmer weather - ironically caused by the global warming many UK holidayers are trying to offset - is also causing a growing number of people to avoid venturing abroad for their holidays."

Warren Bright, propertyfinder.com: "Many coastal towns are already property hotspots, but we can expect prices in popular UK holiday destinations to rocket compared to the market in general."

He added: "Many coastal towns are already property hotspots, but we can expect prices in popular UK holiday destinations to rocket compared to the market in general.

"People looking to buy second homes may do well to broaden their search from the prime locations - by moving just a few miles inland from the coast, properties are often much more affordable and a good investment."

The growth of second homes has become a massive issue in many parts of the South Hams.

In some towns and villages in the district, there's outrage that so many properties are lying empty for much of the year, while local people find it impossible to get on the property ladder.

East Portlemouth, near Salcombe, has been dubbed the second home capital of the South Hams.

Nearly half (49.65 per cent) of the houses in the picturesque seaside village are used on a part-time basis, figures from the South Hams District Council (SHDC) show.

Seventy-one of the 143 properties in East Portlemouth are second homes.

In Salcombe, 43 per cent of properties are second homes and in South Huish, the figure is 42 per cent.

The problem is also bad in Chivelstone, where nearly 39 per cent of the houses are second homes.

For the whole of the South Hams district, just over 10 per cent of properties are used part time.

In 2003, the SHDC became the first council in England to reduce the council tax discount given to second home owners.

The council decided to reduce the second home owners discount from 50 per cent to 10 per cent.

According to the SHDC, the measure has helped to raise an extra £2m a year. This money has been spent on a number of affordable housing projects in the area.

The 90 per cent rate is the maximum permitted under the Local Government Act 2003.

The average cost of a property in the South Hams is more than £280,000, while local workers earn an average salary of just £15,000.



Post this story to: del.icio.us | digg | newsvinePrinter-friendly





comments


What do you think? Give us your opinion on the comments page.



Report this page

If you have some concerns about the content of this page, please let us know here.



this week …