Second homes and Airbnb-style shorts blame …
A government report suggests house prices are rising to three times the national rate in some rural and coastal areas – the fault being more blamed on Airbnb-style vacation homes and short-term rentals.
The report released by the Office for National Statistics found a sharp increase in house prices in UK tourist hot spots, reaching 25% in North Wales and 22.5% in the North from Devon during the year through July. In comparison, the average price of houses in the UK has increased by eight percent.
The ONS says this risks losing many low-paid workers, which is vital for tourism businesses such as hotels.
The office says an increase in vacation home purchases, the general “space race” and the growing number of Airbnb-style short rentals are making matters worse.
Nathan Emerson, Managing Director of Propertymark, said: “The pandemic has been a catalyst for change in the lives of many people and we are now seeing a rush for bigger properties, more outdoor space and a more idyllic life.
“Add to that low interest rates and the stamp duty holiday and what we have seen is enormous pressure on rural and coastal areas whose housing supply and infrastructure are not designed for such an influx. .
“We have also seen house prices in these areas rise; this is because so many properties have seen such high demand that they have been the best and the finest with up to 19 buyers per home.
“While buyers from outside the region bring with them higher wages, the bidding wars have been astronomical in some hot spots.
“Other areas, mainly cities like London, have seen a dramatic drop in demand and therefore low prices.
“For this reason, we have seen these places become more attractive to investors. “