September 21, 2023

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Second houses: Brexit exodus attracts consumers to Devon cream

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The UK’s second-home capital is a Devon seaside resort. Almost a fifth of all houses in Salcombe and surrounding villages are used for holidays, to the chagrin of many priced-out locals. Home costs there have spiralled to a imply of £1.2mn, about 4 instances the nationwide common. 

In Britain, the proportion of households with a second house is unchanged at 3 per cent over the previous decade. That’s lower than in France, the place the ratio is one in 10 or China, the place greater than a fifth of city households personal a number of houses.

Treemap showing the reasons given for owning a second home 2021/22 Households who own a second home in England (%*, 2021/22)

However the location of British bolt holes has shifted. Ten years in the past, Brits have been extra more likely to go for a second dwelling in France or Spain. Brexit has since restricted the time UK residents can spend within the EU. Consequently, six out of 10 second houses are inside the UK.

Stacked bar showing the change in location for UK second homes away from Europe since brexit More British second home owners are buying properties in England, Location of second homes (%)

Worldwide consumers usually tend to go for a Mediterranean villa, Alpine ski chalet or Tuscan farmhouse. Essentially the most sought-after second dwelling location is the Côte d’Azur, in line with a Savills rating.

Local weather change would possibly reshuffle the pack. Properties with good rail connections may attraction to consumers eager to restrict the enlargement of their carbon footprint. In Sweden, the epicentre of the “flight shaming” motion, there’s already a convention of holidaying near dwelling.

Local weather change may also take a toll on prized locations, notably lower- altitude ski resorts the place snow shall be rarer and coastal locations which are weak to sea stage rises. Scorching summers might enhance the recognition of northern Europe on the expense of the south. 

There’s an more and more hostile political local weather too. UK second owners already pay stamp responsibility surcharges. Many extra are set to pay larger council tax when new laws is handed. Wales not too long ago hiked its most council tax premium for second owners to 300 per cent.

Deterrents can backfire. A Swiss ban on the development of latest second houses in some areas was ineffective and led to an increase in unemployment, in line with research published by the Centre for Financial Efficiency. It discovered current second-home traders have been the true beneficiaries.

That helps clarify why value rises for prime ski resort properties — 15 per cent within the 12 months to June — have been greater than twice the vacation dwelling common recorded by Savills. The coronavirus pandemic-era increase has not totally dissipated.

Hybrid working will underpin demand for second houses by permitting individuals to spend extra time away from their metropolis base.

The Lex crew is occupied with listening to extra from readers. Is a second dwelling in Devon an excellent funding? Please inform us what you suppose within the feedback part beneath.

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