August's latest properties
UK second homes market set to soar
The UK second homes market is set to grow to an unprecedented £53 billion in the next 10 years as thousands of Brits favour up-and-coming UK hotspots over foreign locations. A new study from Direct Line Home Insurance, in conjunction with The Centre for Future Studies, reveals that by 2015, the number of people buying second homes in the UK will rise by 24% to 405,000 - 156,000 more second properties than will be owned overseas.Currently, Britons own 328,000 homes in the UK and 178,000 properties abroad.
Future second home hotspots are likely to be areas earmarked for regeneration, such as Bradford and East London.
And Newcastle, Liverpool and Glasgow are predicted to be popular future locations too as strong economic forecasts mean these cities become ideal locales for rural dwellers looking for pied-á-terres close to their city offices.
Meanwhile, Central London, currently the most common location in Britain for second homes, will continue to attract second homeowners thanks to robust economic growth and high employment.
Birmingham will also be a popular location, as more parents snap up properties to house their children through university.
In addition to the practical economic factors determining place of purchase the report finds climate change is becoming an increasingly significant motivator to buy in the UK versus overseas - Exmoor and the Scottish island of Mull set to make the second home hotspots list due to increasingly hot summers by 2015.
The coastal resort of Southend also makes the hotspots list thanks to its excellent investment prospects, above average house price inflation and close commuter proximity to the capital.
Among the reasons cited as influencing prospective buyers to select second homes in the UK rather than overseas are: convenient travel (31%), better investment opportunities (21%), preference for the British culture and climate (20%) and the lack of any language barrier (12%).
Factors influencing prospective buyers when it comes to choice of locations for their future second homes are: the natural beauty of a location (51%), friendly locals (26%) and proximity to family and friends (23%).
When it comes to funding their second homes 25% will use savings, due to increased affluence, while 12% will acquire their second home through inheritance. Meanwhile, 18% of prospective buyers will re-mortgage their existing home.
A number of key factors are predicted as growth influencers for the UK second homes market over the next 10 years - rising affluence likely to be to the fore with UK residents predicted to be 73% better off financially over the next 20 years.
Another factor to consider is the ageing population, given there will be a significant increase in the number of people who fall into the typical second homeowner age group (45 and over).
Finally, gradual climate change may see the UK witness similar temperatures to the South of France by 2050. Coastal areas will become a particularly attractive prospect as buyers anticipate this warming climate. All of this assumes the global warming theorists are correct, of course.
25 August 2005 © Moneyextra.com