Holiday homes taking house prices beyond locals’ reach: report

Holiday homes taking house prices beyond locals’ reach: report

	Published : Wed, 05 Oct 2005 12:15 By : Cedric Benson Print this Story

Who would imagine that the picture-perfect countryside of Scotland would go through a housing crisis? It certainly seems unlikely that a region blessed with green meadows and rolling hillsides and lakes and plenty of sun would have its inhabitants complaining about having fewer houses to buy. But that’s exactly the scenario today.

Local people from the low or middle income group in rural Scotland are finding it increasingly difficult to buy properties. There is even a sense of desperation among some locals as they find a lack of options. The resentment is clear particularly among young people who grew up in these areas but are forced to look elsewhere for homes.

In some places, like Mull, house prices have risen by over 130 percent in just three years with the average house price reaching £191,522 this year.

The reason for this growing shortage is the urban demand for second homes and holiday homes in rural areas. The growing number of commuters, retirees and people from cities buying holiday/second homes has made property prices in these areas shoot up beyond the reach of the local people.

From a Communities Scotland report published today, it is clear that the Executive is aware of the growing problem in Scotland. The report said the number of second home/holiday home residences in Scotland had more than tripled over the last two decades.

According to the 2001 Census, holiday/second homes in Scotland had grown from 9,500 in 1981 to almost 30,000. During the last four years the total number had risen more sharply. The Highlands, Argyll and Bute lead the pack with the maximum number of such homes in these areas. Places like Aberdeenshire, Edinburgh, Fife, Galloway and North Ayrshire also had significant number of such homes. Many celebrities have their second homes in these areas. These include JK Rowling, Charlie Whelan, Sir Paul McCartney and Sir Cameron McKintosh.

Almost half of all such homes were in the most remote parts of Scotland, where the local economy was already struggling with unemployment forcing most young locals to move elsewhere. In some areas, it was found that one in eight houses is a second home. It has also been observed that areas that have a large number of holiday/second homes also tended to lack social housing.

The problem affected a lot of communities from these areas and in many places people were forced to live in overcrowded houses and sub-standard conditions.

Local people from rural areas could not get on to the property ladder because of rising house prices and sluggish income levels. There was some disagreement over whether and how much holiday/second homes were contributing to the situation. Some insisted that retirees and people who chose to buy a more relaxed lifestyle brought benefits like spending and creating employment which could boost local economy. Some locals plainly objected to the influx of city folks, saying “keep out”. They could not be convinced of any benefits that these holiday/second homes brought for the natives.

There is also another view that whether or not holiday/second home owners competed in the market, many locals would still be unable to afford a home. For most people the main issue was the lack of affordable housing.

The quango aims to achieve its targets for which it will ask the government for additional funds. Earlier this year, it said it would tackle the shortage of affordable housing with a £3 million funding to develop a land bank for new homes. Some members of the agency said imposing a 100 percent council tax would discourage the purchase of holiday homes and also generate funds for building affordable housing. Local authorities have been given the flexibility in council tax discounts which can give them as much as £20 million a year.