The second homes market in England and Wales has been valued at over £43 billion, a record high despite the tax and regulation obstacles recently thrown at second home ownership.
A survey by online agency Yopa says flats are the most common type of second home but with some regional variations – terraced houses are the top choice in the North East, and detached houses are favourite in the East of England, Wales, and the East Midlands.
Perhaps unsurprisingly the South West is the UK’s second homes hotspot with 21% of the total market. In London, an estimated 24,880 second homes are collectively worth £11.6 billion in the current market.
Verona Frankish, chief executive of Yopa, said: “Whilst there is a robust number of second homes across all regions of England and Wales, it’s a market that is largely dominated by London and the South West and for two contrasting reasons.
“London is one of the most desirable property markets in the world and attracts a high level of foreign investment, as well as second home purchases for those who desire the professional convenience of a property within the capital that removes the need for a lengthy commute.
“The South West, however, is very much a holiday hotspot with second home purchases driven by the allure of having a coastal bolthole to escape to during the summer months.
“Unfortunately, both regions are home to some of the highest house prices across England and Wales, meaning that those who do have their sights set on a second home purchase are now set to pay considerably more for the pleasure, following the government’s decision to raise second home stamp duty thresholds to 5%.”