What does it mean when a housing market has an increase in second home ownership? The number of second homes in England rose by 2.6% in 2009 following a contraction in 2008 of -0.4%. This rise, which equated to 6,212 additional second homes, pushed the total to an all-time record of 245,384. Does this indicate further investment in second homes to let or an increase in wealth? Low mortgage rates in the UK could also be a factor as well as favorable currency exchange rates. On the down side it could be interpreted as difficulty to sell a second home with a lack of buyers seeking a typical second home.
From a social perpective does second home ownership mean real estate stock laying empty when others could do with a home. Does second home ownership push up house prices making it even harder for people to get a foot on the housing ladder?
Liam Bailey, head of residential research at Knight Frank, comments: "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%). The recovery in 2009 - with an additional 6,212 English second-homes, marked a return to long term growth.
More figures here : Second Homes Increase In England
Thought provoking post Nicholas. I have seen a dramatic drop in second home purchases here in Northern Michigan