Second home ownership pushes up property prices in top spots in UK, research shows

RAY CLANCY Property Community 03/04/2010 12:32

Second home ownership driving up prices in UK

Second home ownership drives up prices in the UK in areas with a high concentration of these types of property and the effect is not just limited to the popular south coast towns, research reveals.

The impact can be dramatic and with demand for second homes increasing the divide between local and second markets looks set to continue widening, according to a report from Knight Frank.

'Wealthy incomers have long been a source for complaint from locals in second home hot spots. The level of this uplift can be dramatic,' said Liam Bailey, head of residential research at Knight Frank. He gave an example of Constantine Bay in Cornwall where average prices are 131% higher than the local average.

In three other locations, Rock and Trebetherick, both in Cornwall, and Bamburgh in Northumberland, all have second home price uplifts of between 90% and 100%, the research shows.

The top English second home hot spots in 2009 were in the South Hams local authority area which includes Dittisham, Kingswear and Salcombe. Nearly one in ten homes in the South Hams district are registered as second homes.

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