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TODAY'S OTHER NEWS

Local communities warned second home sales bans will backfire

A property expert has warned against bans on second home sales and has suggested giving local buyers first refusal instead.

It comes after residents of seaside town Whitby last week voted that all new build and additional housing in the parish should be restricted to primary residences.

While not binding, 2,111 or 93% of respondents voted in favour of the measure.

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It joins Fowey, St Ives and Mevagissey to have voted on the restriction.

Communities hope that by restricting the sale of second homes, properties will become more affordable for local residents and help to grow local small businesses within the area. 

Data from Rightmove shows the average house price in Whitby is £254,218 in contrast to the typical salary in the town of £18,900, with the influx of second home purchasers pushing properties out of affordability for many local residents, according to analysis by property advisory firm Cornerstone Tax.
 

But David Hannah, group chairman of property advisory firm Cornerstone Tax, said the move could create a more fractured market as it could reduce supply and push up prices for all types of property.

He said: “Whilst I understand this measure taken by Whitby and other communities around the UK, I think it has the potential to create an even more fractured market in these locations. 

“By limiting the sale of second homes, it will decrease the supply, however I believe the demand will remain high - causing the value of second homes to increase even more.

“I do think there are other potential solutions rather than simply limiting the market in this way.

"Perhaps a better idea might be to allow local communities a window of time when a home is initially listed, before it becomes available to any potential buyer.”

  • Richard Copus

    This headline is completely false. Nowhere in the article does it say or even imply that local communities warn that a second homes sales ban will backfire. In fact is says that 93% of respondents supported the measure and the locally elected Council passed it. The article says that a property expert warns this. Estate Agency Today - please try to be a little bit more honest!

    Algarve  Investor

    The headline says 'local communities warned second home sales bans will backfire' - and then the article goes on to state a property expert warning local communities that it could backfire. I can't see how that's misleading, unless I'm missing something? Which is entirely possible.

     
  • Richard Copus

    Whoops: a misreading of "warned" to "warn". Quite right Algarve Investor and apologies EAT! One of the dangerous risks of being too busy and speedreading.

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