Second homes and buy to let boom across North Lincolnshire

More than one in five houses bought last year in North Lincolnshire were bought as second homes or to rent out, figures show.

By The Newsroom
Tuesday, 23rd October 2018, 4:00 pm
Updated Tuesday, 23rd October 2018, 4:08 pm
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According to 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.

Last year 22% of properties sold in North Lincolnshire were classified as second homes.

Around 710 were bought in the financial year 2017-18, with a combined value of £91 million.

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.

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

The number bought last year in North Lincolnshire has increased by 18% since 2016-17, when around 600 second homes were purchased.

The National Housing Federation 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 urged more investment in social housing.

Mr Jeffwitz said: "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."

In total, around £5 million was collected from stamp duty in North Lincolnshire last year. Duty on additional dwellings made up 53% of that amount.