Staycations boost UK second home market

Staycations and a new way of holidaying pushed second home ownership in the South West to a new record high last year, according to the latest Knight Frank New Build Second Homes report.
 
Second home ownership in England was at the second highest level on record in 2010, despite slipping slightly from 2009 levels – a fall led by the decrease in second homes in London.

Second home ownership in the South West hit a record high in 2010.

Demand for larger houses has risen strongly over the past twelve months as more families choose "generational" holidays, with grandparents, children and grandchildren staying in the same holiday property. The demand for larger homes from holidaymakers wanting to do the same means investors have also become more interested in more spacious properties. Illustrating this trend, sales of newly-developed three-bedroom houses by Knight Frank in the South West trebled in the year to June, compared to the previous 12 months.

Demand for holiday lets in the South West was up 70% in the early months of the year compared to the same period in 2010.

Knight Frank research shows that the neighbourhood with the most second homes in Leysdown-on-Sea, on the Isle of Sheppey in Kent, where chalets and holiday homes make up nearly two-thirds of all houses in the area. Nearly half of all homes in Trebetherick area of  Polzeath in North Cornwall are second homes.

Gráinne Gilmore, Head of UK Residential Research at Knight Frank, says: "The staycation trend seen in recent years looks set to continue as the weak pound makes the option of holidaying abroad or buying a home overseas seem less attractive. Instead, buyers are choosing a second home in the UK. The possibility of letting out the property when they are not staying also means that it becomes an investment as well as a luxury.

"As more families choose to stay in the UK rather than jetting overseas, there is an increasing focus of 'generational' family holidays, with grandparents joining their children and grandchildren on holiday."