The impact of second homes on prices!

Second homes generally have an impact on house prices as shown when levels of second home ownership rise so do average house pricesi. This is logical as second home owners are not likely to be attracted to low value housing markets and in higher value areas prices are pushed up by the budgets of affluent second home owners. For example, in five parishes of Cornwall where second homes account for more than 35% of all housing the average house price is 87% above the Cornwall average. This premium falls to 46% where second home ownership is between 20% and 30% and falls further to 23% where second home ownership is between 10% and 20%. Local buyers, on local incomes and earnings, will therefore be priced out of some but certainly not all housing markets.

The level of second home ownership in Cornwall is such an issue that Cornwall Council has voted to press for a change in the planning regulations which would mean that homeowners who want to use their property as a second home or as a holiday let would require planning permission.

Cornwall Monitoring Report 2012-2013, December 2013.


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