South West has highest proportion of rented propertie...

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

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