Second Homes - The Economic Impact on Rural Communities

There is concern in some quarters that secondBy renting a second home out as a holiday home
homes have a negative impact on the economyfor part of the year, when it is not in use by the
of rural communities. In some parts of the UK,owner's family, it ensures that money is brought
local strength of feeling about this has occasionallyinto the local economy as the family renting the
erupted into arson, for example, with a numberholiday home will inevitably spend money in the
of second homes being burned down in Wales.local shops, restaurants and at local attractions.
The main issues that create controversy areThis is clearly a positive impact on the local
twofold. Firstly, there is the argument that secondeconomy and far better for the local community
home owners drive up prices in rural areas,than having a second home stand empty.
pushing them out of the reach of local people andYet many owners of second homes resist renting
exacerbating the problem that there is notout their home to holidaymakers.
enough affordable housing for low income localThere are a wide variety of reasons for this. It is
families. This is clearly an area that needs aoften not as simple as whether or not the owner
balanced approach and well thought out strategyof a second home would like to make a profitable
to help solve this very real issue.return on their property.
The second common concern is that secondSome second home owners simply do not want
houses are unoccupied for a large part of thestrangers in their home and this is a strongly felt
year and this deprives local businesses of potentialemotion they are not likely to overcome.
custom, sometimes badly affecting their viability.Others do not want to get involved in what they
Another aspect of this is that local schools cansee as complex property management issues,
become short of children, sometimes forcing localinvolving a lot of work and practical difficulty. For
schools to close. Indeed, on some areas verythese owners, the answer is often to hire a
popular with second home owners, the area canholiday homes services specialist that can take
feel like a ghost town out of season, without theaway the hassle and arrange everything on their
community vitality and vibrant local economy thatbehalf, making the whole process of renting out a
characterises some other rural areas.holiday home very straightforward.
The problems seem to be focused on highlyIf a holiday homes services specialist is engaged,
localised rural and coastal areas, the kind ofthey can arrange all aspects of property
attractive areas that are popular for secondmanagement, cleaning services and key holder
homes. For example, in North Cornwall, one inservices as well as sometimes a holiday concierge
three properties is thought to be a second homeservice. This means that the second home owner
or holiday home,can benefit from a stream of income from the
In general, the more remote rural areas have theproperty, all the gain without the pain.
greatest concentrations of second homes as aIn addition, the impact on the local economy is
proportion of all the housing stock, intensifying thepositive as the holiday home rentals bring money
problem of creating a sustainable and robust localinto the local shops, restaurants and attractions as
community with a thriving local economy..well as necessitating the employment of local
Although second and holiday homes contribute totrades people, such as plumbers, electricians,
an uplift in property prices in rural areas, it ispainters and carpenters.
important not to view their economic impact in.
isolation from other factors contributing toThe impacts, both positive and negative, of
changes within rural communities and especiallysecond homes and holiday homes touch on a
pressures on local housing markets from otherdiverse range of factors that affect the
groups such as commuters, retirees, or peoplesustainability of rural communities.
wanting a lifestyle change.One thing is clear - renting out a second home as
One way that second home owners can helpa holiday home has a more positive impact on the
avoid any negative economic impacts on the locallocal economy than leaving it standing empty for
community is to maximise the extent to whichlong periods.
the second home does not stand empty.