|
City fatcats and the 2nd home squeeze
The squeeze on City bonuses is set to hit house prices in the second home hotspots of the South West and East Anglia over the next 12 months...
Savills research is predicting that the squeeze on City bonuses, which has precipitated a slowdown in Prime London residential markets, will affect house prices in the second home hotspots of the South West and East Anglia during the next 12 months.
“Recently, these areas have taken on the characteristics of Prime Central London, namely significant wealth chasing limited stock in unique locations. This has led to a significant growth in values,” says Lucian Cook Director of Savills residential research.
“Over the past ten years the average property value in the top 15 hotspots has increased by 287%, far outstripping the average in England and Wales of 180%.”
|
Savills 15 Second Home Hotspots |
|
Area |
County |
Distance from London |
Average House Price
Year to 30/06/07 |
House Price Growth |
|
2001 - 2006 |
1996 - 2006 |
|
Salcombe |
Devon |
218 |
505,130 |
108% |
341% |
|
Sandbanks |
Dorset |
111 |
483,060 |
86% |
286% |
|
Saint Mawes |
Cornwall |
272 |
385,194 |
91% |
233% |
|
Rock |
Cornwall |
249 |
378,052 |
138% |
315% |
|
Wythypool |
Somerset |
191 |
347,950 |
111% |
214% |
|
Padstow |
Cornwall |
260 |
335,520 |
132% |
357% |
|
Cley Next the Sea |
Norfolk |
122 |
331,853 |
113% |
273% |
|
Flushing |
Cornwall |
272 |
330,242 |
92% |
225% |
|
Walberswick |
Suffolk |
115 |
323,769 |
94% |
302% |
|
Burnham Market |
Norfolk |
121 |
316,889 |
72% |
315% |
|
Bigbury |
Devon |
213 |
314,531 |
90% |
263% |
|
Lyme Regis |
Dorset |
154 |
296,540 |
101% |
290% |
|
Port Isaac |
Cornwall |
242 |
280,291 |
79% |
297% |
|
Croyde |
Devon |
209 |
267,546 |
103% |
301% |
|
Cowes |
IOW |
93 |
181,839 |
87% |
299% |
|
Average |
|
189 |
338,560 |
100% |
287% |
|
England & Wales |
|
|
|
69% |
182% |
|
Source: Land Registry / Savills |
Already starting to slow
There is already evidence that these markets have started to slow as a reaction to reduced City bonus prospects.
However, because these markets showed their most startling growth in the 2001 to 2004 period and have consequently not rocketed ahead to the same degree as Prime London in the past 12 – 18 months, Savills believe the chances of price falls are lower than in the Capital, where they expect prices to drop by 3% during the final quarter of the year.
|