Second homes 'set to boom' in UK

The second homes market is set to grow in the UK in the next decade as people snap up extra properties in Britain rather than abroad, a new report predicted today.

Direct Line Insurance said it believed the number of people with second homes in the UK will increase by 24% to 405,000 by the year 2015.

The figure will compare with an estimated 250,000 second homes bought by Britons abroad, it was claimed.

The “boom” will see the value of second homes in the UK increase to £53bn (€77.8bn), said the report.

Hotspots for growth in second homes in the UK will include east London and Bradford, while Liverpool, Glasgow and Newcastle will also be popular locations, said Direct Line.

Parents will increasingly buy properties to house their children through university, so cities such as Birmingham will also see growth, it was estimated.

Exmoor and the Scottish Island of Mull will also make the hotspot list as people buy second homes in the country, according to the report.

Andrew Lowe, of Direct Line, said: “A strong economy, warming climate and a regenerated urban landscape are the key factors set to make Britain more attractive than ever as a second home location.”