x
By using this website, you agree to our use of cookies to enhance your experience.
STAY CONNECTED!
    
newsletter-button

TODAY'S OTHER NEWS

South West has highest proportion of rented properties let as second homes

The number of properties rented as a second home in Great Britain reached 13,680 last year, the highest number on record, according to the latest Hamptons International Lettings Index, formerly the Countrywide Lettings Index.

The data shows that the number of rental properties used as a second home has been steadily increasing since 2007 when its records first began. 

Last year, there were 136% more rented second homes than in 2007 when there were only 5,800. 

The average rent on a second home reached £1,060 per calendar month (pcm) in Great Britain last year, the figures reveal.

This is up almost a quarter - 24% - compared to the average rent of a primary home in Great Britain. 

In London, this rises to £2,030pcm with many second home renters using their London rental property as a pied-à-terre.

The capital has the third highest proportion of rented homes let as second homes, behind the South West in first place and Scotland in second.

Six out of the top 10 second home rental hotspots are located in the South East or South West.

The average cost of a new let rose to £953pcm, up 1.3% year-on-year in May. But the pace of rental growth slowed from 1.9% in April.

Average rents in the North fell for the second consecutive month.  Meanwhile rental growth in London also slowed to 0.9%, driven by year-on-year falls in average rents in inner London.

Aneisha Beveridge, analyst at Hamptons International, commented: “The number of people renting second homes has reached a record high.  The additional stamp duty surcharge on second home purchases introduced in April 2016, increased buyers' upfront costs and resulted in more people deciding to rent a second home rather than buy.

“The places second home renters are choosing include a mix of town and country.  Second home rental hotspots reflect today’s lifestyle choices from the pied-à-terres in towns and cities, close to work, schools and all the amenities that city life has to offer, to rural and coastal locations perfect for escaping the trappings of a busy urban life.

“Average rents rose in seven out of eight regions in May on the back of fewer homes being available to rent than last year.  Rents in the North fell for the second consecutive month, meanwhile rental growth remained strong in Wales, the East and the Midlands.”

Chart 1 – Second Home Rental Properties in Great Britain

South West has highest proportion of rented properties let as second homes

Source: Hamptons International

Table 1 – Rented Second Homes in Great Britain

 

Rented Second Homes

2007          

                                               5,800

2008

                                               4,430

2009

                                               6,700

2010

                                               8,650

2011

                                               9,020

2012

                                               9,880

2013

                                            10,920

2014

                                            12,680

2015

                                            13,490

2016

                                            12,370

2017

                                            13,680

Source: Hamptons International

Table 2 – Top 15 Second Home Rental Hotspots

Local Authority

Region

% of rented homes as second homes

Windsor and Maidenhead

South East

14%

Gloucester

South West

11%

Tewkesbury

South West

6%

South Oxfordshire

South East

3%

St Albans

East

3%

Wyre Forest

West Midlands

3%

Sedgemoor

South West

2%

North Norfolk

East

2%

Rushmoor

South East

2%

Northumberland

North East

2%

City of Edinburgh

Scotland

1%

Castle Point

East

1%

North Ayrshire

Scotland

1%

Kensington and Chelsea

London

1%

South Cambridgeshire

East

1%

Source: Hamptons International

Table 3 – New Lets (pcm)

 

 

May-18

May-17

YoY

Greater London

£1,664

£1,650

0.9%

    Inner London

£2,550

£2,565

-0.6%

    Outer London

£1,496

£1,476

1.3%

South East

£1,036

£1,018

1.8%

South West

£784

£778

0.8%

East

£951

£923

3.0%

Midlands

£676

£661

2.2%

North

£622

£623

-0.1%

Scotland

£635

£626

1.4%

Wales

£668

£635

5.1%

Great Britain

£953

£940

1.3%

Source: Hamptons International

South West has highest proportion of rented properties let as second homes

icon

Please login to comment

valpal
submit
sign up