Research from Swinton Insurance indicates that second home investments are still a popular choice. With interest rates lower than they’ve been since 2017, now seems a prime time to buy – but where?
It’s not just coastal and countryside regions that are among the top hot spots for holiday home purchases; increasingly towns and cities are getting in on the action. Swinton Insurance tracked the number of second homes in England, Scotland and Wales from 2010 to 2018 to see where buyers are investing.
When it comes to second home market trends, Manchester and London have both seen a notable increase in second homes. Manchester is at the top of the tree with the biggest rise in the number of second homes between 2010 and 2018, 5,422 in total — up from 591 in 2010 to 6,013 in 2018. Second and third places with the largest rises in the number of second homes go to Camden, London with 3,002 and Kensington & Chelsea at 2,117.
Regions with the greatest percentage growth
Croydon is in the number one spot for the location with the greatest percentage growth in second homes, at a staggering 6,529%. Second place goes to Cannock Chase at 1,650%, and Rochdale is in third place with 1,048%, while Manchester sits at number four with 917% growth.
The highest growth overall was seen in the north-west region with a 43% increase and Greater Manchester alone seeing 224% growth which could be attributed to increased investment and the potential job opportunities in the city which has seen more people move north from London.
Other areas that saw positive change were the north-east which grew by a significant 33% – the biggest improvement was seen in South Tyneside with growth of 488%. The east of England saw 7% growth, and Yorkshire and Humber 6%.
Where will investors buy in 2020?
Analysing the fastest rates of growth over the past two years, Swinton has predicted the areas most likely to see growth in second homes in 2020. Basingstoke and Deane, along with Southampton, have both seen a 37% increase over the past two years and top the list for potential top locations for second homes in 2020. Brentwood closely follows in third place with a 35% growth, and Newcastle under Lyme and Warwick fill fourth and fifth spots.
The south-west, namely Devon, Dorset and Somerset, may have plateaued with 0% growth, but they were just as popular in 2018 as they were in 2010, and are likely to remain attractive areas of investment for holiday homes.