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Second home ownership soars towards the value of £1 trillion

The number of British people owning a second home has soared by more than 50 per cent since 2001 as the value of additional property wealth nears £1 trillion, according to a new report.

Research from think tank the Resolution Foundation revealed that 5.5 million people – around one in ten of the UK population – own a second home, buy to let or overseas property, up from 3.6 million in 2001.

The jump was driven by buy to let mortgages, which have risen 15 times since the turn of the century.

Wealth from second homes owned by UK adults has also risen over the same period to £941bn.

It found that while 50 per cent of people born in the 1960s owned a property by the age of 29, that dropped to 37 per cent among those born in the 1980s.

One in six baby boomers – 1.2 million people born in the 1950s – reported owning extra property, the data from 2014 to 2016 revealed.

Despite the surge in second home ownership, the number of millennials owning a home continues to fall.

The report urged policymakers to rebalance the housing market to help first-time buyers.

Resolution Foundation policy analyst George Bangham said: “While young people in particular are less likely to own their own home than previous generations, those that do own are more likely to have more than one property.

“And as the huge stock of second homes, buy-to-let and overseas properties starts to be passed on to younger generations, Britain risks becoming a country where getting ahead in life depends as much on what you inherit, as what you earn.”

By Callum Keown

Source: City AM

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Edinburgh property market at its hottest since credit crunch

THE Edinburgh’s property market is at its hottest since the credit crunch, a new report claims.

More homes in the city are being put up for sale and more people are looking to buy.

Warners Solicitors & Estate Agents said activity among both buyers and sellers was at record levels and showing few signs of slowing down despite Brexit.

Between January and March, the firm said it recorded over 250 property sales – an increase of over 40 per cent compared to the same period in 2018 – and brought almost 300 properties to the market.

David Marshall, operations director with Warners, said: “There had been a feeling that activity in the local property market would be subdued in the early part of 2019 as people were expected to wait and see the outcome of Brexit negotiations before deciding to buy or sell. This has not been borne out in reality.

“The rise in the number of homes coming onto the market that we have seen has been the greatest improvement in the market over the last two years.

“In 2016 and 2017 many people were having to delay selling their own home because they couldn’t find a property that they wanted to buy.

“As more homes have become available it has made this problem far less common. 
Buyers are more often able to find a home that they want, while most sellers are still able to sell their properties quickly.”

He said throughout 2016 and 2017, a significant shortage of homes for sale across Edinburgh and the Lothians had led to multiple buyers competing to secure properties, which meant that buyers found themselves having to bid well in excess of the Home Report valuation in order to be successful.

The market began to see a steady improvement last year, with Warners observing an 11 per cent rise in the number of new property listings compared to 2017.

Supply improved further in the first quarter of this year with more sellers willing to take the plunge and get their home onto the market.

Mr Marshall said as a result, the premiums buyers were now having to pay were lower than in recent years, with the average premium paid over the Home Report valuation now 3.4 per cent, down from 6.9 per cent in the first three months of 2018.

He said: “With the pressure on buyers having eased, house price inflation has also come back down to more manageable levels.”

Latest figures from ESPC show the average house price in Edinburgh rose by 1.8 per cent during the first quarter, though one and two bedroom flats in popular parts of the Capital have seen prices soar.

Mr Marshall said: “The levels of inflation we are now seeing are much more sustainable over the longer term so this is good news for the health of the market and, as we move forward, we would expect to see inflation continue in the region of one to three per cent for much of 2019.”

By IAN SWANSON

Source: Edinburgh News