Coastal property markets shine as holiday fever hits
The demand for second homes in the UK is growing and with the height of summer approaching, housing markets in coastal towns are booming. 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.
Almost 500,000 UK households own a second home, and 60% of Britons’ holiday homes are located in the UK. 25% of all UK holiday homes are located in the South West, and a further 23% in the South East of England, where house prices are already much higher than the UK average. House prices in popular coastal holiday towns, such as Rock, are soaring. These resorts are becoming micro markets - ruled by demand factors independent of those influencing the general market.
A key factor driving demand for second homes is a growing sense of ‘green’ responsibility in the UK. 22% 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, commented:
Warmer weather - ironically caused by the global warming many UK holiday makers are trying to offset - is also causing a growing number of people to avoid venturing abroad for their holidays.
Underpinning demand is the insatiable Great British appetite for bricks and mortar – people want to own property and view it as a good investment. People are confident in the UK housing market and rising house prices - they are keen to capitalise by investing in property.
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.
In certain places, second home ownership has become a problem, and propertyfinder.com welcomes proposed government legislation to more tightly control the use of properties as second homes. But second home owners are not monsters. According to research by VisitBritain, 76% of people believe their holidays should benefit local people where they are staying and in the majority of coastal resorts, the purchasing of holiday homes positively contributes to local economies. Too often second home owners are made a scapegoat for local councils’ shortfalls in providing affordable housing.
