Second Homes
The Chancellor recently announced measures to increase Stamp Duty on the purchase of Second Homes. An interesting move, I assume, aimed at the higher end of the investment market without consideration for the personal investor looking to invest in a tangible commodity from which they can personally enjoy the benefit as a family holiday home, thereby generating income in the Shires. This is the second attack in a year on investment property with income tax levies being changed on the income from buy to let properties where owners have mortgages on them. It is perhaps an easy route to boost the revenue coffers for the Chancellor but will hinder the property market growth in provincial areas –or will it?
Mindsets adjust to changes in tax rules and they become the norm. No doubt creative accountants and financial advisors will find ways to minimise the new tax rules for their clients but the question we should be asking is “will they reduce the number of transactions taking place?” If it does the Chancellor may himself no better off and the property market will falter. It always bounces back as life in time but rural counties like Devon rely on second home owners and the tourist industry to boost their own economy –as ever there is a bigger picture.
Buying a second home –a holiday home – has enormous benefits and like all property purchases should be regarded as a long term investment. The hidden benefit of a holiday home is the personal memories built around family holidays which no chancellor can tax (hopefully). With an ever increasing concern on foreign travel maybe we will return to the home shores for holidays and life’s cyclical spiral will continue.
I have bought any number of second homes for clients over the years and whilst there will be more discussion about costs in buying I expect to be buying more again this year. The usual criteria will dictate what and where –easy access, minimal maintenance, good views, good restaurants etc..Depending upon budget all are achievable. North or South coast –surfing, sailing, walking on the Moors or maybe a City apartment.
Family and travel logistics dictate where to buy as much as budget. Make sure you buy where you will use it regularly and allow for changing family circumstances –teenagers need more than just a beach to keep them interested.
A few idyllic holiday homes –Primrose Cottage at Whimple in East Devon –pretty as a picture - offered by Knight Frank (01293 423111). The village has a station so use the Waterloo line from London and no car is needed...and not far away in Gittisham is Old Bakery Cottage –the perfect village near Coombe House Hotel –offered by Humberts –(01404 42456) and sailing and water lovers 16 Courtney Street, Salcombe -offered by Marchand Petit (01548 844473)
Devon is very accessible, has one of the longest coastlines of any county, National Parks, swathes of unspoilt countryside and a Cathedral City to match many a European destination –so many choices to get that feeling “it’s all about coming home”.
Nigel Bishop
Founder & Managing Director of Recoco Property Search