Number of Hartlepool properties bought as second homes rockets

Friday, 12th October 2018, 12:24 pm
Updated Monday, 15th October 2018, 10:31 am

Almost one in four houses bought last year in Hartlepool were purchased as second homes or properties to rent out, official figures show.

According to Her Majesty's Revenue and Customs' (HMRC) data, second home buyers – including property investors and landlords buying houses to rent out – were undeterred by new taxes on extra properties.

A second home is defined by HMRC as a property that is bought by buyers who already have primary residences.

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Last year, 24% of the properties sold in Hartlepool were classified as second homes.

About 350 were bought in the financial year 2017-18 with a combined value of £41million.

That’s despite an extra 3% stamp duty charge on additional properties, introduced in April 2016 as part of a Government effort to deter buy-to-let landlords, property investors and second home owners.

In England, almost one in four properties bought last year were classified as second homes.

About 232,000 second homes were bought, with an estimated value of more than £70billion.

The number bought last year in Hartlepool has increased by 30% since 2016-17, when about 270 second homes were bought.

The National Housing Federation (NHF), which represents housing associations, said it was concerned about the impact that buying extra properties has on local communities.

Policy leader Will Jeffwitz said: “In any community, if more homes are bought up as second homes then there are fewer available for residents – and the houses left are more unaffordable.”

He added: “If families and young people are priced out of their local communities it can have a hugely demanding impact on community life – with village shops, schools and pubs closing in alarming numbers as a result.”

The NHF praised the Government for reducing stamp duty for first-time buyers.

But it urged that more investment was needed in social housing with Mr Jeffwitz adding: “Our solution is that there should be a renewed focus on building more affordable housing, which reduces the impact of a high ownership of second homes.”

Lawrence Bowles, research analyst at estate agent Savills, said that first-time buyers are still at a “fundamental disadvantage”, despite the new tax.

He said: “First-time buyers will typically be buying with a mortgage, and buy-to-let landlords will often have the money in their account, ready to go.”