New research by London lettings and estate agent, Benham and Reeves, reveals that while Cornwall tops the list for the sheer number of second homes, the highest market values for these properties are found in London’s prestigious boroughs of Kensington and Chelsea, and Westminster.
Second home trends across England and Wales
The study analysed data on second homes across England and Wales, highlighting that there are 141,245 second homes in total. Flats are the most popular choice, making up 42% of all second homes, followed by detached properties at 24%. This trend holds across most regions, though the East Midlands, East of England, and Wales favour detached homes, and terraced homes are most common in the North East.
In London, the second home market is dominated by flats, which account for a striking 87% of all such properties in the capital.
Cornish dominance in volume, London leads in value
Cornwall emerges as the nation’s second home hotspot with 9,425 properties, the highest volume in any local authority area across England and Wales. However, the highest market values are found in London’s Kensington and Chelsea, where the second home market is valued at over £6bn, followed by Westminster at £4.103bn. Outside of London, Cornwall leads again with a market value of £2.873bn, with Tower Hamlets, North Yorkshire, and South Hams also boasting second home markets worth over £1bn.
Second homes: a double-edged sword
Marc von Grundherr, Director of Benham and Reeves, commented on the findings, acknowledging the tension surrounding second homes in areas like Cornwall, where many properties are left vacant for much of the year. However, he also highlighted the benefits these properties bring, particularly in London.
Von Grundherr explained, “The second homes market provides a great deal of positive investment into the property market elsewhere across the nation. London is a particularly good example of this, and we’ve seen many foreign buyers invest into the local housing market, which in turn has helped to cultivate positive property appreciation for other domestic homeowners.”
He further noted that while there should be protections for local homeowners in certain areas, the contribution of second homeownership to the national property market should not be overlooked. “It’s simply not right that we look to eradicate second homeownership as a whole, as it plays a vital role in the ecosystem of the national property market,” von Grundherr added.
