Holiday lets do not impact housing affordability

Holiday lets and second homes in one hotspot in the UK have not, after all, impacted on house prices and affordability, a report has found.

For months there has been growing criticism of short lets, holiday lets and vacation properties for allegedly reducing housing stock and making it harder for young people in tourist locations to buy a home.

However, a report for the Liberal Democrat controlled North Norfolk council suggests otherwise according to a report from the BBC.

The local authority has the highest rate of second homes of any in England and Wales, outside of London. A tally in April showed the area had some 7,169 second and holiday homes.

But the council report says there is "no clear evidence that high numbers of holiday and second homes effects house prices and affordability" and spokesperson Councillor Liz Withington says blanket restrictions on second ownership - like in St Ives, Cornwall, and some other locations - could have unintended consequences.

"A blanket ban stresses other areas such as employment, wage levels and house prices in other areas of the housing market that haven't previously been affected" she is quoted as saying.

She instead backs a government proposal which could allow council tax to be doubled on second homes.

The report will go before the council's decision-making overview and scrutiny committee this week, which is expected to make a series of recommendations to find a balance between business and local housing needs.

Proposals include looking at how both council tax and planning restrictions could helps alleviate problems caused by a high concentration of second homes and holiday lets on the Broads and in coastal areas.

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

Christopher Housden
19 July 2022 09:33 AM

I think regions differ. We used to have a two bed holiday cottage on the coast at Old Hunstanton, which was at least twice the price of a two bed house down the road in Kings Lynn. This was many years ago, but prices just a couple of miles inland would not have the coastal premium and would be a normal price. Norfolk has traditionally been cheaper out of hot spot areas than neighbouring counties. My impression is that perhaps Wales and Cornwall are hotter overall where Norfolk hot spots could be more localised and Norfolk doesn't appear on so many people's radar.