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Cornwall Housing: Locals Priced Out by Second Homes
22 Jul
Summary
- Second homes exacerbate Cornwall's housing affordability issues for locals.
- House prices in the South West have struggled, especially in holiday hotspots.
- High-priced homes remain unsold, failing to help local first-time buyers.
Cornwall's housing market faces a critical issue where unsold homes are accumulating because locals cannot afford property prices set by homeowners.
The region experiences significant economic seasonality, with tourist numbers in August being over 900% higher than in January. This influx impacts the housing market, creating affordability problems exacerbated by a high concentration of second homes in popular coastal locations.
While national trends show price adjustments, the South West's housing market has struggled, with price falls concentrated in holiday and second-home hotspots like Cornwall and Torridge. Affordability has improved slightly, with price-to-earnings ratios falling.
However, these price reductions may not benefit local buyers as unsold properties are concentrated in higher price brackets. In areas like Rock and St Mawes, luxury homes priced over £1 million remain on the market, inaccessible to most Cornish residents.
Shrinking wealth flow from London and the South East, coupled with increased costs for second homes, has reduced buyer numbers at the top end. This has led to a rise in unsold homes and a decline in prices, though it does not solve the affordability crisis for local first-time buyers.
