Second homes drive local house prices higher by up to 130%
Date : 26 February 2010
Our assessment* of second home hot-spots confirms that high concentrations of second home owners drives local pricing up significantly. This effect is not limited to the main south-coast centres.
Liam Bailey, head of residential research at Knight Frank comments: “It is unsurprising that the presence of second homes in a local housing market serves to drive prices higher than they otherwise would be – wealthy incomers have long been a source for complaint from locals in second-home hot-spots.
“The level of this uplift can, however, be dramatic – in Constantine Bay in Cornwall, average prices are 131% higher than the local average. Three other location – Rock and Trebetherick (again in Cornwall) and Bamburgh in Northumberland all have second-home price uplifts of between 90% and 100%.
“With growing demand for UK second homes (total number up 6,212 in 2009) the divide between local and second home markets looks set to widen.”
The impact of second home hot—spots on house prices…
|
LA
|
Name
|
Highest priced postcode in town (£)
|
Average price in town (£)
|
Average local authority price (£)
|
Average uplift from local authority average (£)
|
|
North Cornwall
|
Constantine Bay
|
584,000
|
497,406
|
215,392
|
130.90%
|
|
North Cornwall
|
Rock
|
1,249,000
|
430,632
|
215,392
|
99.90%
|
|
Berwick
|
Bamburgh
|
339,000
|
285,700
|
142,992
|
99.80%
|
|
North Cornwall
|
Trebetherick
|
655,000
|
416,787
|
215,392
|
93.50%
|
|
North Norfolk
|
Langham
|
774,000
|
357,183
|
194,175
|
83.90%
|
|
South Hams
|
Dittisham
|
980,000
|
487,918
|
266,539
|
83.10%
|
|
South Hams
|
Newton Ferrers
|
807,000
|
474,698
|
266,539
|
78.10%
|
|
North Norfolk
|
Blakeney
|
677,000
|
329,439
|
194,175
|
69.70%
|
|
South Hams
|
Kingswear
|
891,000
|
450,547
|
266,539
|
69.00%
|
|
South Hams
|
Thurlestone
|
720,000
|
438,843
|
266,539
|
64.60%
|
|
South Hams
|
Salcombe
|
908,000
|
429,674
|
266,539
|
61.20%
|
|
North Norfolk
|
Cley next the Sea
|
437,000
|
307,240
|
194,175
|
58.20%
|
|
Berwick
|
Beadnell
|
345,000
|
217,963
|
142,992
|
52.40%
|
|
Penwith
|
Lelant
|
630,000
|
320,629
|
215,303
|
48.90%
|
|
Berwick
|
Lowick
|
289,000
|
207,791
|
142,992
|
45.30%
|
|
Penwith
|
St Ives
|
680,000
|
263,325
|
215,303
|
22.30%
|
|
Penwith
|
Marazion
|
567,000
|
232,830
|
215,303
|
8.10%
|
Source: Knight Frank Residential Research, CLG
*We considered second home hotspots in the five non-London local authorities with the highest proportion of second homes in England: South Hams (9.8% of all homes are second homes), North Cornwall (9.6%), Berwick-upon-Tweed (9.5%), North Norfolk (9.1%) and Penwith (8.5%).
County-by-county second home analysis, second home totals…
|
County
|
Second-home % of all homes (2009)
|
Second-homes (2009)
|
|
Cornwall
|
7.45%
|
13,815
|
|
Isle of Wight
|
5.01%
|
3,353
|
|
Dorset
|
3.47%
|
13,116
|
|
Cumbria
|
3.42%
|
8,196
|
|
Norfolk
|
3.16%
|
11,933
|
|
Northumberland
|
2.87%
|
2,887
|
|
Devon
|
2.87%
|
12,531
|
|
London
|
2.12%
|
47,849
|
|
North Yorkshire
|
2.02%
|
8,203
|
|
East Sussex
|
2.00%
|
6,975
|
|
West Sussex
|
1.67%
|
6,204
|
|
Suffolk
|
1.54%
|
5,455
|
|
Somerset
|
1.46%
|
5,881
|
|
Oxfordshire
|
1.27%
|
3,390
|
|
Kent
|
1.21%
|
8,892
|
|
Gloucestershire
|
1.13%
|
3,548
|
|
Herefordshire
|
1.12%
|
899
|
|
Berkshire
|
1.07%
|
3,763
|
|
Wiltshire
|
0.99%
|
2,541
|
|
Shropshire
|
0.90%
|
1,421
|
|
Hampshire
|
0.80%
|
6,712
|
|
Warwickshire
|
0.79%
|
1,831
|
|
Surrey
|
0.76%
|
3,574
|
|
Cambridgeshire
|
0.73%
|
2,269
|
|
Cheshire
|
0.70%
|
3,216
|
|
Lincolnshire
|
0.67%
|
3,465
|
|
Essex
|
0.66%
|
5,048
|
|
East Yorkshire
|
0.64%
|
1,837
|
|
Buckinghamshire
|
0.60%
|
1,884
|
|
Worcestershire
|
0.57%
|
1,389
|
|
Derbyshire
|
0.56%
|
1,792
|
|
Hertfordshire
|
0.56%
|
2,611
|
|
Lancashire
|
0.54%
|
3,613
|
|
Leicestershire
|
0.54%
|
2,380
|
|
Tyne & Wear
|
0.53%
|
3,018
|
|
Bedfordshire
|
0.52%
|
1,379
|
|
County Durham
|
0.51%
|
1,780
|
|
West Midlands
|
0.51%
|
9,556
|
|
Nottinghamshire
|
0.44%
|
2,348
|
|
West Yorkshire
|
0.43%
|
4,881
|
|
South Yorkshire
|
0.38%
|
2,516
|
|
Merseyside
|
0.37%
|
2,135
|
|
Northamptonshire
|
0.37%
|
1,071
|
|
Gt Manchester
|
0.28%
|
3,228
|
|
Staffordshire
|
0.20%
|
999
|
Source: Knight Frank Residential Research, CLG
For further information, please contact:
Liam Bailey, Residential Research, Knight Frank, +44 (0)7919 303148
Davina Macdonald Lockhart, press office, Knight Frank , +44 (0) 7796 996 154
Ends
Notes to Editors
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Knight Frank, operate from 207 offices, in 43 countries, across six continents. More than 6,340 professionals handle in excess of US$886 billion (£594 billion) worth of commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com.
No: 10pr077