Savills research predict that as the slowdown in prime London residential markets filters sideways, the second home market will be hit.
?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
Saint Mawes, Cornwall
Rock, Cornwall (largest house price growth: 2001- 2006)
Padstow, Cornwall (2nd largest house price growth: 2001 – 2006)
Cley Next the Sea, Norfolk
Burnham Market, Norfolk
Lyme Regis, Dorset
Port Isaac, Cornwall
Source: Land Registry / Savills
According to Savills, 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 believes the chances of price falls are lower than in the Capital, where we expect prices to drop by 3% during the final quarter of the year.