Second home sales boom
THE booming second homes market – said to have blighted Westcountry communities – has returned as figures revealed around half of the most desirable homes in Cornwall are being snapped up by outsiders.
The trend, identified by upmarket estate agent Savills, is the result of the revival of big City bonuses and poor returns from other investments.
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The firm claims a thumping 43 per cent of "prime stock" bought in Cornwall over the last four years was as a second home, leading one Westcountry MP to claim it was making the region's affordable housing crisis even worse.
Demand for the most expensive residential property in the county, invariably close to water, comfortably outstrips that found in all other locations popular for second homes, Savills research claims.
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Underlining the Westcountry's status as a holiday home hot spot, Somerset recorded the third highest proportion in the same period, with 24 per cent of upmarket purchases made by second homes buyers.
With 20 per cent of properties bought as a second home, Devon trailed slightly.
The research – which characterises "prime stock" as the top 5 per cent to 10 per cent of homes in a local market by price, location and architecture – also showed the fall in prices at the top-end was reversing.
In the last year, prime properties in Cornwall shot up in value by 16.6 per cent – growth that outstrips Devon, Suffolk and the millionaire's row on the Sandbanks peninsula near Poole, Dorset.
In Devon, prices have risen 10.9 per cent in the last 12 months.
The average price sold by Savills' office in Cornwall is £1 million. Meanwhile, its Exeter outpost boasts "far more" buyers hunting for second homes with a £2 million price tag than buyers looking for more modestly priced homes to live in.
Savills research also suggests its market is returning to something close to its peak. It says prices in Cornwall are just 8.5 per cent off their highest watermark in 2007. But Devon, by contrast, is 17.3 per cent short.
Jonathan Cunliffe, head of Savills in Cornwall, said: "The people spending £5 million on a main home in London are often the very same people who are buying a £1 million house by the beach in Cornwall. The last quarter of 2009 was particularly strong, and perhaps this reflected a rising stock market."
Dan Rogerson, Liberal Democrat MP for North Cornwall, who has campaigned for a cap on second home ownership to be made law, said the top end did not exist in isolation from the rest of the market – arguing rising £1 million-plus properties ultimately dragged up the price of middle and low cost housing.
He said: "This comes as no surprise to those in Cornwall who are struggling to get on the housing ladder, to keep families together and to keep rural communities alive."
Comments
by yveyk
Sunday, January 13 2013, 2:48PM
“Buying second homes in Devon or Cornwall is a selfish and stupid act by those who think it would be nice to own a holiday home in Cornwall or Devon. Dont buy a house or a cottage or an apartment, you are killing communities with your selfishness. You should buy a caravan on a limited residency property on a recoginised park estate.
The reason village shops, pubs and other businesses are closing is because you are only here for a few weeks a year, we live here all year, work here bring up our kids here. Go back to your big houses up the line and let local people who have local jobs live in local housing. Sooner or later the government or local councils will have to insist you either live here or let the house to locals. Dont buy property here you aren't making your permanent home. You will have no shop, no pub, no services, there will be no care for the elderly as the care workers can't afford to live in the area. You are making it hard for those that rely on this area for their living. I think it is safe to say you won't be welcome for much longer. Look what happened in Wales, the locals burned down the second homes of outsiders, do you want that?”
by Dave Joslin, St Austell
Friday, March 19 2010, 10:55AM
“More fat cat Tory voters coming to Cornwall and putting even more properties out of the reach of locals by inflating the prices. The council if it had the will could do something about it but I won't hold my breath. And, grammatically, a building only occupied for a few months a year can hardly be called a home.”
by Charles Henry 1945-(diuturnity), Somersetshire
Friday, March 19 2010, 9:26AM
“:| Is there really a difference between other 'assets' and second homes? . . I think this all comes down to whether this is a Communist country with control by some central Civil Service Elite as 'Europe' and the EU has become, or a free Capitalist country where footballers and others can earn £Millions, much to many people's annoyance. . . The very base 'politics of envy' starts raising its ugly head here if we are not all very careful.”
by christopher, Northlew
Friday, March 19 2010, 9:24AM
“We lived in a rural community in Cornwall until 2008 when our landlord decided to sell the house we lived in, Our home was right next to the sea and the beach was just 20 feet away. The house was subsequently purchased as a holiday let and because there was only 4 full time residents in the village, of around 30 houses, this number then went to just 3.
We were lucky and got in on affordable housing but this was in Devon, this was our only option and isn't available to everyone, so not only did we have to move out of our home, then our village but also the county! All because there is not housing stock to allow people to live in their communities.
Cornwall soon enough will be closed between October and March simply because no one lives there in winter!
Something has to be done about second home ownership including taxing to the hilt and local laws that curb this continued destruction of our communities and way of life. Holiday lets do not, in anyway enhance Cornwall's economy! no matter how they twist it, in fact it does quite the opposite. Just look at Newquay and the continued closure of B&B's and hotels, not because there are less people coming to Cornwall, but because more and more are opting for holiday lets, there has always been ample accommodation here during the summer months including Caravans, touring parks and camping.
The very people who buy second homes are usually the ones who object to new home construction in villages because it lowers the price they can get for their 'let' The selfish, money grabbing arrogance of these people usually from the East is very evident.
The sooner something is done and this practice stopped, the better.”
by Steve, PZ
Friday, March 19 2010, 9:14AM
“Lets not forget that the week pound means that buying a property abroad is a lot more expensive than it was 12 months ago. Plus second home owners is a bit misleading. Some people have invested very heavly in Cornish property and are indeed 10 or even 20 home owners. And why not? It¿s a great way to reinvest a companies profit instead of paying tax.”
by Theo H, Lifton
Thursday, March 18 2010, 7:10PM
“@ Ian, South Brent
The Tories looked at second home ownership in one of the "commissions" Cameron set up. This report was prepared by Zac Goldsmith and John Gummer. They reported it would be "impractical" to do anything about second homes.”
by James, Bodmin
Thursday, March 18 2010, 1:55PM
“A call to arms folks, Outsiders Out Ousdiders Out, oh they are out that why they are called second home owners. Funny story”
by Gary, Saltash
Thursday, March 18 2010, 1:03PM
“Calmer Waters,
What's Cornwall council got to do with private housing?
I really do not agree with second home owners but feel the subject is not as easy as some think it is to solve with Europe tearing down barriers and making us all sing the company song ¿ In German no doubt”
by Gary, Saltash
Thursday, March 18 2010, 12:59PM
“Whats an outsiders ED?”
by Calmer Waters, The Duchy Of Cornwall
Thursday, March 18 2010, 12:25PM
“ZONE Residential Housing For RESIDENCE.
ZONE Tourist Accommodation For TOURISTS.
Come on, Cornwall Council - get a grip!
Put Cornwall's FULL TIME RESIDENTS first.”