Currently, a third of Brits either already own a second home or would consider buying one in the UK. But with travel restrictions hampering the plans of many in the UK looking to go on holiday, this figure is likely to rise.
According to new research from The Guild of Property Professionals, 35 to 44-year-olds are the most likely to consider purchasing a second home in the country.
Traditionally the summer would have been a slower period in the property market with many Brits holidaying in other parts of the world. However, it seems that as more people opted for a staycation in the UK due to travel restrictions, their attention turned to the property market and finding a primary property that offers them more space and a better quality of life or holiday home that they can escape to for some much need rest and relaxation without the fear of having to quarantine.
According to Rightmove statistics, July was one of the busiest months the property market has seen in the past decade and it seems that the market is continuing to accelerate rather than slow down. The surge in demand for property has led to monthly prices increases in ten out of twelve regions during a time when the market would normally see a decrease in prices as seller attempt to entice holiday distracted buyers. More people are looking at property and more sales are being agreed than for the last ten years in the property market as the post-lockdown mini-boom continues.
Iain McKenzie, CEO of The Guild of Property Professionals, comments:
“Approximately 1 million people in the UK, which equates to around 4% of all households, have turned their dream into a reality and own a second property. With the current demand for property surging and the stamp duty holiday in play until 31 March 2021, we could see more and more people tempted to purchase the cottage in the countryside or flat overlooking the beach despite the fact that they would still need to pay a 3% surcharge on a second home."
Research conducted by The Guild has shown an increase in those looking for second homes, for holidays as an alternate base as the UK adds more and more countries to the no go list as Europe increases in Covid-19 cases.
The 35-44s age bracket are the most interested in having a second property in the UK, with 45% looking to add a second home.
“As prices rise, and accommodation is booked out across the country, Brits are also looking at property now more than ever to generate income, with just under a quarter (22%) saying they would consider buying a property to list as an Airbnb.
“Investing in a second property is a way for people to have a holiday home they can enjoy with their family when they want to while having the option of letting it out as a short-term holiday let on a platform such as Airbnb.”
He adds that some attribute the government’s announcement on stamp duty as a driving force, with a fifth (18%) now considering purchasing property because of the SDLT holiday. “For those looking to purchase a primary residence in England or Northern Ireland, there is no stamp duty up to £500,000, with those purchasing a second home having to pay a 3% surcharge. Essentially this means that people buying a second home are paying around half the stamp duty they would have paid prior to the SDLT holiday announcement, which definitely makes it a more attractive and financially feasible option,” says McKenzie.
He concludes by saying that the real estate market contributes £101.2bn to the UK economy and makes up 7% of the nation’s GDP, so Brits investing back into the country is a welcome position for the British economy.