Rapid Evidence Assessment of the Research ... - Rural Housing

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Rapid Evidence Assessment of the Research Literature on the Purchase and Use of Second Homes Tables Table Page 1 SEH Second Homes 1999/2000 18 2 SEH Second Homes Totals 21 3 Second Homes Data Supplied in a Parliamentary Answer 22 4 Reasons for Having a Second Home 32 5 Percentage Share of Total Second Homes by English Region 34 6 English Authorities with the Highest Proportions of Second Homes 2004/5 35 7 Districts with the Highest Proportion of Second Homes in 2006 36 Figures Figure Page 1 Number of Second Homes by Council Tax Bands in Suffolk District Authorities 27 2 Second Homes as Proportion of the Housing Stock at Local Authority level 2004/5 37 Acronyms AONB Area of Outstanding Natural Beauty CCHR Centre for Comparative Housing Research CLG Communities and Local Government CRC Commission for Rural Communities DCLG Department for Communities and Local Government DETR Department of the Environment Transport and the Regions DMU De Montfort University ICT Information and Communications Technology NHPAU National Housing and Planning Advice Unit ODPM Office of the Deputy Prime Minister ONS Office for National Statistics SEH Survey of English Housing 6
Foreword by Professor Glen Bramley The topic of second homes is an area of considerable debate and controversy. And as Professor Michael Oxley has set out in his comprehensive review of the literature, while this is an area that generates a great deal of heat, robust evidence about the social, economic and environmental consequences of second homes is actually limited. To generalise, those who support, or at least are not opposed to people owning second homes, would argue that in a market economy people should be able to spend their income however they like. Further, they might argue that this sector not only provides for those seeking a ‘bolt-hole’ for leisure and holidays, but also in an urban setting they are an increasingly important part of helping some workers achieve a better work-life balance. Others suggest that there are economic benefits for rural and local communities associated with a healthy second homes market. There appears to be a general consensus that at a national and regional level the effect of second homes on prices and affordability is small. My own research on the relationship between house prices and second homes at a national level is that for every 1 per cent of the housing stock in second home-ownership, prices are 1.4 per cent higher. Relative to other local factors on house prices, this is a very small effect. There is an alternative view. There is concern about the impact of second homes – where these make up a significant element of the local housing stock – on local first-time buyers. My own analysis of local housing markets suggests that in areas where there is a high proportion of second homes the effect on prices can be significant. For example, based on data from 2005, out of about 380 local authorities in England in 11 prices had been raised by more than 10 per cent, and in 28 by more than 5 per cent. There is a worry that some communities are being ‘hollowed-out’ by absentee owners. As recently as July, in his review of the rural economy and sustainable housing, Matthew Taylor recommended that ‘Government should examine options for trialling planning rules limiting change of use of full time homes to [second homes or holiday lets]’. Some are opposed to second homes altogether while there are people living in overcrowded conditions, or on the grounds of environmental sustainability. In this context it is easy to understand why Regional Planning Authorities tend to avoid addressing this matter. For example they rarely include an allowance to cover the demand for second homes in their housing plans. Of course, in reality a lack of planning for second homes does not deter people purchasing. There is no law or policy that discourages second home ownership, and nor do they appear likely. A failure to plan for second homes actually ends up biting on first-time buyers and those at the margins of home ownership due to a further undersupply in the market. 7
Page 1 and 2: Rapid Evidence Assessment of the Re
Page 3: Contents Foreword 7 Executive Summa
Page 7 and 8: Executive Summary There is much dis
Page 9 and 10: Executive Summary There is a lack o
Page 11 and 12: Introduction 6. We have also applie
Page 13 and 14: How have second homes been defined
Page 15 and 16: Definitions used in the UK Census H
Page 17 and 18: 42. How have second homes been defi
Page 23 and 24: To what extent (if any) have second
Page 25 and 26: Number of Second Homes 85. To what
Page 27 and 28: Future trends To what extent (if an
Page 29 and 30: What specific factors attract peopl
Page 31 and 32: What specific factors attract peopl
Page 33 and 34: What is the geographical distributi
Page 35 and 36: What is the geographical distributi
Page 37 and 38: 6. What are the social and demograp
Page 39 and 40: What are the social and demographic
Page 41 and 42: 7. Do households own more than one
Page 43 and 44: Has there been any improvement in t
Page 45 and 46: 9. What are the social and economic
Page 47 and 48: Social impacts 183. Gallent et al (
Page 49 and 50: What are the social and economic im
Page 51 and 52: 10. Evidence Gaps and Further Resea
Page 53 and 54: Evidence Gaps and Further Research
Page 55 and 56:
Evidence Gaps and Further Research
Page 57 and 58:
Evidence Gaps and Further Research
Page 59 and 60:
References Communities and Local Go
Page 61 and 62:
References Office of Population, Ce
Page 63 and 64:
Appendix A Direct Line Sources Data
Page 65:
National Housing and Planning Advic
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