ZPG PLC January 16, 2015
Cold, bleak January is when the holiday industry experiences a spike in summer bookings as frozen Britons put down deposits on a sunny getaway. It is also when the second home market starts to warm up, as buyers invest in a bolthole by the sea or in the country.
Most of the towns and villages most beloved of second home owners are still suffering the after effects of recession; markets reliant on outside money have struggled to reach pre-recessionary prices because those discretionary buyers have been staying away.
It means that there is good value to be had in some fabulous locations. Marazion is not Cornwall's best known destination, but it is gorgeous - a dreamy stretch of white sand which is popular with both young families and and kite and windsurfers. There's a very active sailing scene in town, and you can travel by sleeper from Paddington to nearby Penzance which is handy.
Duncan Ley, manager of Humberts in Truro, said around one in 10 homes in the village are sold to second home owners, and the more expensive the property the more likely it is that the buyer is a second homer. Average prices now stand at £297,000, up 6.18 per cent in the last 12 months, but Mr Ley said this is still below their peak in 2007.
Expect to pay £200,000 to £300,000 for a two bedroom cottage. The good news is that second home owners in Marazion can subsidise their purchase by letting the property out when they are not there.
"There is a thriving tourism market here - driven by the proximity to St. Michaels Mount," explained Ley. "Throughout Cornwall it would be very difficult to cover a high loan-to-value mortgage with letting income, simply as the purchase costs are so high. However, with a sizable deposit (40 per cent plus) the right property could provide a small income and owners would have the advantage of capital growth over the long term which could easily outstrip returns on conventional savings.
If you prefer countryside breaks to bucket and spade holidays then Bakewell, Derbyshire, is a great place to consider. This ancient capital of the Peak District is a gorgeous looking market town surrounded by some of Britain's best and lushest walking country.
Bakewell's fine stone buildings, riverside walks, and cute shops, attract plenty of visitors, as does its proximity to Chatsworth House. But it manages to maintain an intimate, independent feel - the community recently banded together to prevent a branch of Costa Coffee opening. An average home in the town costs £350,583, up 3 per cent in the last year.
Amanda Millthorpe, branch manager of Saxton Mee estate agents said that buyers should expect to pay between £200,000 to £300,000 for a "picture perfect" character cottage with two or three bedrooms, or from around £225,000 to £250,000 for a convenient apartment in a converted mill building.
Buyers come from all over the country - including Sheffield and London - and tend to be 40-plus couples. "The market has been getting better in 2014 and I think 2015 is going to follow suit," she said.
Another area where the market has been growing is Whitstable in Kent. Average prices now stand at £289,147, up 4.01 per cent year on year.
Whitstable has long been high on the wish list of Londoners seeking second homes; it is pretty much the first beach you hit east out of the capital. It has super range of seafood restaurants in the streets around the harbour, and a generally charming period town centre.
Will Roalfe, director of Christopher Hodgson estate agents, said the second homes market in the town has been in recovery since 2010 and homes today cost "well in excess" of 2007 levels. The most expensive option is a home on the seafront where a two to three bedroom mid-terrace cottage would cost around £600,000.
A similar property in the town centre conservation area would cost around £300,000. And while there will be the opportunity to let a property to holiday makers when it is not in use, Hodgson warned that the shortness of the high season coupled with something of a glut of rental homes means that this would not cover the full costs.
"People buy a second home here as a lifestyle choice. It may be that they are selling a house in London and they find they can afford to buy something much better here for a lot less money," he said.
For sale:
1. A charming stone cottage, with three bedrooms, and an easy walk to the centre of Bakewell could be yours for £399,999.
2. If you are a fan of the Georgian era then this two bedroom townhouse in the heart of Bakewell, priced at £325,000, could fit the bill.
3. A lock up and leave two bedroom flat with fabulous sea views in Marazion is on the market at £335,000.
in Whitstable (which would not look out of place among the glass and steel beach houses of Poole) is on the market at £1.5m.
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