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Cheap mortgages pay for second homes

Date: Thu, 25 Aug 2005

The growing availability of cheap mortgages is helping to boost the UK second homes market.

Research by Direct Line Home Insurance shows that the second property market is likely to increase by 24 per cent over the next decade, with an extra £53 billion being invested.

The study, conducted in partnership with the Centre for Future Studies, estimates that by 2015 the number of people buying second homes in the UK will total 405,000 - 156,000 more than in the overseas second home market.

In particular, university towns and cities will see an increase of second home purchases as parents attempt to take advantage of the lucrative student rental market.

The effects of climate change could also see a shift of second home purchases to more rural areas, such as Exmoor, as hot summers expand the traditional holiday home hotspots.

"A strong economy, warming climate and a regenerated urban landscape are the key factors set to make Britain more attractive than ever as a second home location," said Andrew Lowe, head of home insurance with Direct Line.


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