Our new research predicts second home hotspots around the UK after the stamp duty levy on buy to let and second home properties increases by three percent.
The research was conducted to understand how second home hotspots might change after the stamp duty hike in April 2016. It looks at a map of the top 40 second home locations and evaluates which locations are in the most robust housing markets (based on house price growth) and combines that with the areas which would feel the tax hike least in percentage terms*.
Ian Westerling, Managing Director at Humberts, commented on the research: “With the majority of second home buyers located in the Capital, it is perhaps no surprise that all the areas in the top 20 post-April hotspots are in the Southern half of England. A property within reasonable proximity of their main home and one which offers peace and quietude often in a village location are by far the most important criteria for the majority of the second home buyers on our books right now.
The research also shows that the average price of properties in the post-April hotspots is almost double that of the top 40 second home locations - £400,000 (excluding Kensington and Chelsea) compared with £211,000 – suggesting that the busiest second homes markets after April could well be the preserve of the wealthy.”
Top 20 second home hotspots after April are all in Southern England with an average property price of £400,000
Most second home owners have their main residence in London: eight of the top 10 home districts for owners of second homes elsewhere are in West and Central London
Of the top 20 hotspots, the fastest time it would take house price inflation to pay off the stamp duty increase is three months (in Kensington & Chelsea) and 16 months in East Devon
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