Editor’s note: This item is republished with permission from Global Edge Marketing Ltd. The original post can be viewed here.
The number of English people owning second homes in England reached an all-time high in 2009, according to research by Knight Frank, a global residential and commercial real estate company.
A 2.6 percent increase on the 2008 figure equated to an additional 6,212 second homes, pushing the overall total to a record 245,384.
Liam Bailey, head of residential research at Knight Frank, said: "The number of second homes in England has been steadily rising over recent years.
"The recession and credit crunch saw this trend falter in 2008 — when the total fell by 912, or 0.4 percent. The recovery in 2009 — with an additional 6,212 English second homes, marked a return to long-term growth."
According to Knight Frank there are four clear reasons for the upturn in demand for second homes:
- Confidence: Renewed economic and consumer confidence in early 2009 encouraged more affluent buyers to reconsider purchases they had put on hold in 2008.
- Finance costs: Very low interest rates encouraged demand from wealthy buyers.
- Currency change: A weaker British pound made house purchases in the Eurozone more expensive and encouraged buyers to look at second homes in the United Kingdom.
- Investment alternatives: Very weak returns on cash investments and nervousness over equity market volatility drove investors to consider property investment options again.
Liam Bailey added: "Wider social trends have been pushing the demand for U.K.-based second homes over recent years.
"There is a perception of a ‘green’ credential that attaches itself to (vacations) in the U.K."
He also noted that a trend toward "localism" has prompted an exploration of more local vacation options.
Copyright © 2010 Global Edge Marketing Ltd.
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