Lake District records strong house price growth, analysis finds
House prices in the Lake District and Windermere rose by 8.4% over the past year, according to analysis from Schofields.
The Lake District and Windermere recorded the strongest annual house price growth among the popular holiday destinations, with prices rising by 8.4%, according to analysis from Schofields.
Northumberland recorded growth of 8.3%, followed by the Peak District at 8%, Blackpool at 7.3% and the Scottish Highlands and Skye at 6.8%.
Prices rose by 6% in Eryri and Snowdonia, 5.4% in Glasgow, 3.8% in Cardiff, 3.6% in the Norfolk Broads and 3.4% in Whitby and Scarborough.
Phil Schofield from Schofields said: “What stands out is that some of the strongest price growth isn’t necessarily happening in the UK’s most expensive holiday destinations.
“Areas such as Blackpool and Northumberland remain among the more affordable places in our research to buy a family-sized holiday property, yet they have experienced notable rises in semi-detached property prices, with increases of 7.3% and 8.3% over the past year, respectively.
“For prospective second-home buyers, that combination of a lower entry price and recent price growth is likely to be particularly interesting.”
Schofield added: “Northumberland, for example, has an average semi-detached price of just over £205,000, while Blackpool’s is around £161,000.
“Pembrokeshire is another relatively affordable option, at around £190,000, although prices there have fallen over the past year (down 8%), showing why buyers shouldn’t assume that every popular or affordable holiday destination will deliver the same returns.
“The fact that places such as the Lake District, Northumberland, the Peak District and Blackpool have recorded increases well above the overall UK average suggests there are very different local dynamics at play.”
He said: “Popular UK holiday destinations can have demand coming from several directions at once, local buyers, people relocating to the area, and buyers looking for second homes or holiday lets, while the number of suitable properties in the most desirable locations can be relatively limited.
“Affordability is important too. When household budgets are under pressure, holidaying in the UK can remain attractive to people who don’t want the additional cost of travelling abroad, helping established staycation destinations maintain their appeal.
“From a buyer’s perspective, looking beyond the traditionally expensive holiday-home hotspots can also open up destinations where the initial cost of purchasing a property is considerably lower.”
He added: “However, strong growth over the past year shouldn’t be treated as a guarantee of future returns.
“Anyone buying a holiday property as an investment needs to consider the longer-term picture, including year-round visitor demand, occupancy, mortgage and running costs, and taxation, as well as the potential for the property itself to increase in value.
“The changing tax landscape is another reason buyers need to do their homework.”
He said: “The proposed powers for English mayors and local leaders to introduce an overnight visitor levy could create an additional consideration for holiday-let owners.
“While the Government intends for any levy to be percentage-based so that lower-cost stays aren’t disproportionately affected, owners will still need to understand how any local charge could affect pricing and demand before making investment decisions.”
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