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

Rapid Evidence Assessment of the Research Literature on the Purchase and Use of Second Homes
There is a lack of detailed systematic nationwide research on the socio-economic characteristics, and the
housing markets, of locations with large proportions of second homes.
There is evidence from the annual Survey of English Housing that the two major drivers for second home
ownership are a holiday/weekend/retirement home and as an investment. A further significant factor is ‘working
away from home’.
Although, there is little current quantitative evidence on the types of property purchased, there is a consensus
from qualitative studies that there has been a growing degree of diversity in the type of second homes. In rural
areas, picturesque cottages, and abandoned/low demand stock in deep rural areas, remain popular but other
types are sought after including bungalows, flats and ex-council houses.
In urban areas, there is a focus on newly-built flats in a central location. This is contributing to a situation where
it can be difficult to distinguish between the main and the second home. Households may purchase a large
detached rural property that eventually becomes the main home with a city flat as a second home.
There is relatively little up-to-date information and analysis of the socio-demographic characteristics of those
buying second homes in England. There is some limited information on the socio-demographic characteristics
of second home owners (rather than those buying second homes). This limited evidence indicates that second
home owners are high income earners with heads of household between 45 and 64 years of age. The most
common household type is a couple with no dependent children. Nearly 70 per cent of heads of households
are in full time work.
A small number of studies have attempted to classify and categorise second home owners but there have
been no robust recent studies that have considered the characteristics of second home owners compared to
local residents.
There is some limited evidence that more households will have an opportunity to purchase a second home
over the next decade because of demographic factors and rising incomes. One study suggested that the total
number of second homes in the UK could increase by 24 per cent by 2015. This has important implications for
the development of an appropriate policy response. For instance, Regional Planning Authorities currently do not
consider second homes in their housing plans.
Some households may well own more than one second home but the number is not known. There has been
no attempt to investigate the number of households that do own more than one second home.
The impact of second homes on house prices and affordability is assumed but not proven. In particular, there is
a lack of robust evidence to support the contention that second homes increase house prices. There is a need
for detailed analysis of the impact of second homes in relation to the many other factors that influence local
housing markets.
There is a lack of good quality evidence on the impact of second homes on local housing markets and local
communities. There is a case for examining the positive as well as the negative impacts of second homes on
local economies, housing markets and communities.
Socio-economic impacts are highly localised and there is a consensus that regional and sub-regional impact
studies are of relatively little use. Social impacts are hotly debated and discussed with a ‘taken-for-granted’
assumption that second homes growth can negatively affect the socio-cultural character of traditional
communities. More robust studies over the last three decades have highlighted the research challenge of
unpacking second homes from other factors such as commuting and holiday homes. The literature indicates
that environmental impacts are also a major policy concern, especially at the local level.
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