Second homes exodus
Estate agents in picturesque or rural parts of Devon and Cornwall say many second-home owners are choosing to sell up rather than pay the rising monthly bills for two properties at once.
This is releasing homes for new buyers moving into the area and for local people struggling to find a permanent home in the region.
One estate agent in Cornwall has reported its best-ever sales figures with “one property a day” changing hands in July.
While there is no evidence of widespread recovery in the market – prices are still falling slowly and mortgage lending is low – the signs are that good-quality homes in select locations are attracting an increased number of offers.
Patrick May, of Strutt & Parker's Exeter office, said second-home owners were selling up because the rising everyday costs associated with fuel and food were making it difficult to justify owning two homes.
“There is no question that demand for second homes is falling and people are selling up. Buyers regard them as a luxury and in the current economic climate, luxuries have gone. Ultimately, the people set to benefit are those living in the area but can't yet afford to buy.”
He said people with second homes were selling up because they were not seeing a capital growth and the rental income was sporadic.
John Keogh, a retired Royal Marine officer from Tavistock, West Devon, has put his second home – on Dartmoor – on the market for £199,950.
He said: “My wife and I are nearly 70 and we have decided to release the capital in the house rather than keep the asset.
“We've been in the buy-to-let business since the 1980s and we have often had to wait months to sell. We also understand the housing market is cyclical and maybe it is not the ideal time to sell.
“But at our stage of life, it's time to travel club-class rather than standard.”
Sarah Lillicrap, of Lillicrap and Chilcott, which specialises in waterside homes in Cornwall, said July had been its best-ever month since setting up 2000.
“I think people have seen all the hype about the credit crunch and are now feeling calmer because prices have been adjusted. Cornwall has always been isolated from the rest of the country to an extent because of the number of prestige properties and their limited supply.
“Also, more people are choosing to holiday in the UK and that makes the area attractive.”
Lillicrap and Chilcott sold one property every day in July.
However, popular areas along the coast such as St Ives have not yet been deserted by second-home owners.
Chris Wood, president-elect of the National Association of Estate Agents, who has an office in Helston, Cornwall, said: “We've had the best sales month for 12 months.
“People are still keen to get their hands on individual properties in rural locations. These are houses of character which people wish to buy. Some are holiday homes, but not all.
“It is a tough market out there, but it is clear there are pockets of the UK where sales are holding up and are strong.”
In general, the more expensive a property is, the more likely it is to find a buyer.
And despite a price fall over the last eight months, local people, who often earn less than the average wage, still need prices to fall further or lending conditions to improve.
But an influx of townspeople seeking a new lifestyle and retirees anxious to find an ideal home in the region is keeping the market buoyant.
Many are people who sold their main home 18 months ago, fearing an economic downturn, started renting and are now ready to return to the market.
One trend is a fall-off in the number of buyers from London.
But Chris Watkins, senior negotiator at Charles Head and Son in Salcombe, Devon, said: “What we have noticed is that the London and South East market is much quieter than recent years.
“People buying are more from the Midlands. I'm receiving offers from Leicester, Leeds and Bristol. These people are not as closely linked with the turbulent stock market.
“In the last three weeks, there have been signs of optimism, although volume sales are down 50 per cent on this time last year.
“In Salcombe, the majority of people are buying as an investment for second homes and property lettings. I have yet to see any evidence of people liquidating their assets and moving away.”
Richard Copus, Devon spokesman for the National Association of Estate Agents, said: “There is a positive attitude – viewings have increased and offers are being made.
“Frankly, I think a lot of people are bored of hearing about the credit crunch and want to get on with their lives.
“People who sold to rent have suddenly decided to buy and take advantage of lower prices. They'd rather have their cash in a property than in the bank.”
Retired John Keogh and his wife have decided to sell their buy-to-let cottage on Dartmoor
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