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`Staycations' could be reason for rise in second homes

10:51, 16 December 2011

Help with first stop on property ladder
Help with first stop on property ladder

Despite the recession, and the threat of higher council tax bills, the number of second homes in England actually rose slightly to 246,494 this year, up by nearly 500 in the last year, a new survey shows.

Estate agent Knight Frank says the increase - revealed in figures from the Department for Communities and Local Government - may be partly explained by the rising popularity of 'staycation' holiday among Britons.

Grainne Gilmore, head of UK residential research at Knight Frank, says: "The number of second homes in England has now remained steady for two years, after peaking at 256,000 in 2008. But second-home ownership is still higher than back in 2007 when the property boom was in full flow.

"The results are a little surprising as trading conditions have been challenging over the last year, with the lack of mortgage finance proving a stumbling block for some potential buyers. But they reflect a wider trend for holidaying at home, with coastal locations most popular among second-home buyers."

The data shows northern regions have become more popular among buyers, resulting in a rise in the number of second homes. Meanwhile the number of homes getting council tax discounts as second homes fell in both the east and west Midlands.

There was also a 3.5% dip in second home ownership in south-west England, while the number of second homes rose in the South East, with an increase in the number of second properties valued at more than £320,000 for council tax purposes.

Although there were rumours of some owners, particularly in the South West, deciding to sell this year, these will not now emerge as actual sales until next year.

The total number of second homes in London also fell slightly in the past year, but there has been a 3.3% rise in second homes in the top council tax bracket.

Jonathan Haward, chairman of house-hunting agency County Homesearch said: "The second homes market faces uncertainty.

"If economic recovery remains slow, then a slew of sales, as finances are strained, could trigger significant drops in value."

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