England’s housing market has boomed for the last two years, with high demand sending prices skyward. One reason for this is people buying additional properties. In fact, 10% of the population is thought to own additional property, with the vast majority investing in buy-to-let rental property.
Analysing data on additional property purchases made in the last financial year, Octane Capital has found that there were 230,800 additional property purchases which equate to 23% of all housing market transactions.
Regionally, those places where additional homes account for an above-average portion of the market include Yorkshire & Humber (24%), the North West (26%), and North East (26%), but nowhere do they account for a more substantial slice of the market than in London, where 35,100 additional home purchases equate to 29% of all housing market transactions.
This makes London the second home capital of the country and here’s a breakdown of additional home purchases on a borough-by-borough level.
The most active additional home market in London is Kensington & Chelsea where 1,200 additional home purchases equate to 52% of all market activity in the borough.
Westminster isn’t far behind, with additional homes accounting for 48% of all transactions, followed by Camden (38%), Harrow (38%), and Brent (37%).
The boroughs with the lowest percentage of additional homes are Waltham Forest, Lewisham, and Bexley, all of which account for 21% of market activity.
Jonathan Samuels, CEO of Octane Capital, commented: “Some may frown upon second homeowners, but the fact of the matter is that the vast majority are buy-to-let landlords, not high-end homeowners restricting stock availability by purchasing rarely used holiday retreats.
"So while almost a quarter of all transactions may be attributed to second homes, these purchases are serving a vital purpose, providing much-needed rental market stock to a nation that is becoming increasingly more reliant on long-term renting as a means of living.
"Of course, there are exceptions to the rule and London’s prime market is certainly one of those exceptions. Across the likes of Kensington and Chelsea and Westminster, a higher propensity for second home ownership is undoubtedly being driven by wealthy homeowners increasing their own private portfolio, rather than investing in buy-to-let opportunities.”
