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George Mainwaring

Second Home Market 'set For Boom'

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You should read the Ireland thread on here.

One post links to an article that will have you aghast at the stupidity of some people.

Second homes?

See the thing is house prices may fall but there may be many people (some on this board?) who have cash in hand are looking to buy that bijou little cottage in Devon or Somerset. They will still have more money than FTBs....

A HPC wont solve anything for anyone.

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The demand for second homes is directly linked to the equity in a first home. Most second home buyers raise their capital via MEW. If house prices fall or stall the average second home buyer cannot raise the finance. Does anyone know a second home owner who has bought good old fashioned cash?

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Is this government schizophrenic or what? I mean, make up your mind.

On one hand they want to monitor buy to let (suggest: to restrict the price explosion) and at the same time there seems to be encouragement from their media lackies to start a boom in the second home buyers market (suggest: to stop the crash). No as I write this I understand. It all makes perfect sense. They want a stagnation and this is the engineering phaze.

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Isn't this the whole poiint of K&P's show where they look for two places (Is that relocation relocation?) a pied a terre in the town and a lovely home in the country? Thats all about two homes... and once you've acknowledged people can have two homes on national tv then why shouldn't they both be lovely?

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This one got me really riled. The BBC website has almost no journalistic integrity left. This is the complaint I have filed:

I am dismayed at how the BBC News website is regurgitating spin about the housing market as news, with no attempt to question any of the assertions reported.

I refer specifically to the article "Second home market 'set for boom' ". I am particularly concerned by the use of language that presents opinions and dubious predictions as fact, and the lackof balance in the article.

For example, the first sentence reads "A house in the sun could soon mean a second home on the coast of Britain rather than the Costa del Sol, research has found."

The word "find" refers to the discovery of something that actually exists beforehand. An astronomer "finds" a new star, a scientist "finds" a cure for a disease.

This report has not "found" anything. It has made a prediction about a future event, although at no point in the article are we told on what evidence. It is as if I said I had "found" the winner of this seasons FA Cup.

The authors of the study go on to make a number of remarkable assertions that go unchallenged.

For example, "With Britons expected to become 73% richer over the coming decade." Expected by whom? On the basis of what? The writer of the article fails to fulfil one of the basic functions of journalism - to question and to provide balance. I'm sure a quick call to any number of city analysts would have produced a very different take on the health of the UK economy.

A real journalist would also have taken the trouble to find out a little more about the "Centre for Future Studies", and also to ask whether the centre and the co-author, Direct Line, have any vested interested in talking up the property market.

The article as a whole gives the casual reader the impression that house prices will inevitably rise, particularly in the so called hotspots, but in fact provides no evidence. And it makes no mention of, for example, the fact that prices are falling in many parts of the country, that first-time buyers make up only 8pc of the market compared to a long term average of around 40pc, or that mortgage approvals have fallen sharply.

In short, I believe this article does a disservice to your readers. It would be more honest of BBC News Online to simply reproduce the original press release on which this was based, rather than superficially re-writing it and presenting it as "news", with all the credibility that entails.

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STRAIGHT FROM THE PR AGENCIES - HERE'S THE SPIN

Commissioned by Direct Line Insurance - produced by The Centre for Future Studies

UK second homes to soar 24 per cent by 2015

25 August 2005.

Second homes market to grow to £53 billion in the next decade

The UK second homes market is set to grow to an unprecedented size in the next 10 years, as thousands of Britons 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 per cent to 405,000 – 156,000 more second properties than will be owned overseas.1

Currently, Britons own 328,000 homes in the UK and 178,000 properties abroad.2

This UK second homes boom will see the total value of second homes owned in this country climb to £53 billion by 2015.3

Future Second Home Hotspots

Cities

Areas earmarked for regeneration - Bradford City Centre and East London4 - are predicated as future second home hotspots

Newcastle, Liverpool and Glasgow are predicted to be popular future locations for second homeowners as strong economic forecasts mean these cities will become ideal locations for rural dwellers looking for pied-á-terres5 close to their city offices

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 for second homes, as more and more parents snap up properties to house their children through university.

Rural/Coastal Areas

In addition, the Direct Line Second Homes in the UK Report finds climate change is becoming an increasingly significant motivator to buy in the UK versus overseas, with Exmoor and the Scottish island of Mull set to make the second home hotspots list due to increasingly hot summers by 2015.6

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.

UK versus Overseas Second Homes Hotspots

Among the reasons cited as influencing prospective buyers to select second homes in the UK rather than overseas are:

Convenient travel (31 per cent)

Better investment opportunities (21 per cent)

Preference for the British culture and climate (20 per cent)

No language barrier (12 per cent).

Factors influencing prospective buyers' choice of locations for their future second homes are:

The natural beauty of a location (51 per cent)

Friendly locals (26 per cent)

Proximity to family and friends (23 per cent).

How Second Homes Will Be Financed

When it comes to funding their second homes,

Due to increased affluence, a quarter (25 per cent) will use savings

One in 10 (12 per cent) will acquire their second home through inheritance

A fifth (18 per cent) of prospective buyers will re-mortgage their existing home.

Drivers of UK Second Homes Market

A number of key factors are predicted as growth influencers for the UK second homes market over the next 10 years:

Britons' rising affluence - UK residents are predicted to be 73 per cent better off financially over the next 20 years, and many will use their disposable income to invest in second properties closer to their place of work

The ageing population - a significant increase in the number of people who fall into the typical second homeowner age group (45 and over) is forecast

Gradual climate change - the UK is predicted to experience similar temperatures to the South of France by 2050 with the first signs of this climate change already occurring. Coastal areas will become a particularly attractive prospect as buyers anticipate this warming climate.

Andrew Lowe, Head of Home Insurance, Direct Line, comments:

"A strong economy, warming climate and a regenerated urban landscape are the key factors set to make Britain more attractive than ever as a second home location.

"With roughly 328,000 Britons currently owning a second home in the UK compared to 178,000 who own properties overseas, our report shows that many thousands of buyers will choose to invest in the UK rather than overseas in the next decade.

"As this trend continues, second homeowners need to think seriously about properly insuring their second properties and treating them as important assets to be protected, as they would their primary residence."

For a full copy of the Direct Line Second Homes In The UK Report visit www.directline.com

ENDS

For further information:

Simon Ziviani/Direct Line Press Office

Tel: 0845 878 2270 simon.ziviani@directline.com

Mark Lowe/ Band & Brown Communications

Tel: 020 7419 7341 / mark@bbpr.com

Notes to editor

The Centre for Future Studies is part of an international network of futurists and strategic planners advising organisations on how to understand and plan for possible and probable futures. It was commissioned by Direct Line Home Insurance to develop the Second Homes in the UK report. In addition to other sources, data was gathered and analysed from an omnibus survey conducted among homeowners by YouGov on behalf of Direct Line Home Insurance between 26-27 July 2005.

1. 2. There are currently 328,000 second homeowners in the UK, which will rise to 405,000 by 2015. In 2003/4, UK residents owned 178,000 properties in foreign countries and it is predicted that by 2015, 249,000 overseas second homes will be owned by UK residents - Direct Line Report: Second Homes in the UK, August 2005 – forecasts based on figures taken from Office of the Deputy Prime Minister (ODPM) Survey of Housing, 2002/3, 2003/4 and 2004/5

3. The UK second homes market is set to grow from an estimated £38.7 billion today to £53 billion in 2015. Direct Line Report: Second Homes in the UK, August 2005 – forecast based on information from Council of Mortgage Lenders Housing Report 2004

4. 5. The Direct Line Second Homes in the UK Report, August 2005: Sources include DTi White Paper on Globalisation and the UK, property trends published by the ODPM, Visit Britain, Visit Scotland and the Welsh Tourist Board.

UK Second Homes Hotspots in 2015

Locations For Second Homes Purchased As Holiday Homes

Beckhurst, Sussex

Exmoor

Mull, West Coast of Scotland

Northants, East Midlands

Northumberland Coast

Northwich

North Yorkshire Moors

Snowdonia, Wales

Locations For Second Homes Purchased As A Base For Work

Central London

Glasgow

Liverpool

Newcastle

Locations For Second Homes Purchased As An Investment

Birmingham

Bradford City Centre

East London

Scottish Borders

Southend

Direct Line Insurance plc, authorised and regulated by the Financial Services Authority. Calls may be recorded. Conditions apply.

Edited by gruffydd

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Guest Charlie The Tramp
UK Second Homes Hotspots in 2015

Amazing, they must have a crystal ball. :blink:

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"The Centre for Future Studies is part of an international network of futurists"

Futurists as in members of the early C20 art movement that glorified modern warfare?

Or are they some even weirder splinter group from the scientologists?

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Gradual climate change in the UK - the Environment Agency predicts temperatures in southern England will eventually be closer to conditions in southern France - is one driver expected to keep buyers in the UK.

Convenient travel and the lack of a language barrier were other factors.

errr. hangon a minute THE FRICKING WORLD IS HEATING UP

WTF!!!

HELLOOOOOOOO ANYONE HOOOOOOOOMMMMEEEEE

POSSIBLE END OF THE HUMAN RACE ANYONE?

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the BBC is a bag of *****. All their journos own btls etc. Spin machine. Can I cancel my pissing tv licence? As I don't want to receive their signal, I would however like to keep Sky. ;)

0,10114,5025963,00.jpg

Edited by George

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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