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SHOULD SECOND HOME OWNERSHIP IN THE UK BE BANNED?

Whether it be a holiday home, a buy-to-let property, or simply another way of investing your cash for the future, second home ownership has been hugely popular across the UK for decades. But in a time of increasing difficulty for the property market, should we be allowing people to purchase additional properties or is this just exacerbating the housing shortage?

Property as an investment is increasingly popular – not only does it give investors an opportunity to diversify their portfolio, it can also bring in a regular income through the form of rental payments if investors choose to rent out the property. In an economic climate where many are unable to get on the property ladder, it has never been more important for private rental properties to be made available and it is through buy to let that this can happen.

Would we need more private rentals however, if more of the population were able to get on the housing ladder? And what about those purchasing holiday homes or additional properties for personal use?

In St Ives in Cornwall, there is now a ban in place on new build properties being bought for holiday homes and holiday lets, and other parish councils across the country are backing similar plans to ensure that new build properties can only be bought by locals or those intending to live in the area permanently as opposed to renting the property out or leaving it empty for a large portion of the year.

While people should have the right to purchase as many properties as they like, it cannot be denied that more homes are desperately needed across the country. It has been recently reported that the Government’s targets for house building are way off, and that in fact the UK should be building 340,000 new homes every year until 2031 to combat the housing crisis.

It may be more beneficial to get Britain building, rather than stopping people from buying second homes and buy to let properties. An increase in the number of houses would mean that there were both enough for those to own property as their primary residence, and also those that wished to purchase a second home or buy to let property without putting unnecessary strain on an already struggling housing market.

The Government are facing a number of issues when it comes to getting Britain building, from a lack of skilled workers and materials to a lack of available land that is suitable to build on. The former is only likely to be made worse by Brexit, however the lack of available land is something that can be challenged.

Intro Crowd offer qualified investors the opportunity to collectively fund the purchase of what is known as strategic land. This is undeveloped land that is typically greenfield by classification and is located close to an existing settlement. Greenfield land is either agricultural or leisure land with no previous development – this combined with it’s close proximity to existing settlements (often with a pre-existing requirement for further housing) can make it an attractive proposition to house builders, especially if the site has good road access and is close to amenities such as schools, shops and local transport.

Once these sites are fully funded, Intro Crowd put them through the planning permission process, and if successful they then look to sell them on to a house builder for residential development. By putting forward strategic sites such as these, the UK housing shortage could be reduced, giving more people the opportunity to get a foot on the housing ladder, and freeing up properties for investment or leisure purchases.

For more information on anything mentioned in this article, or to learn more about Intro Crowd and what we do, please do not hesitate to get in touch with us either via telephone on +44 (0)20 7118 4040 or via email at incrowd@introcrowd.com

 

This article is for educational purposes only and does not constitute investment advice. This article does not amount to an invitation or inducement to buy or sell an investment nor does it solicit any such offer or invitation in any jurisdiction.

In all cases, readers should conduct their own investigation and analysis of the data in the article. Readers are strongly encouraged to seek independent legal and financial advice when considering an investment in strategic land. All statements of opinion and/or belief contained in this article and all views expressed and all projections, forecasts or statements relating to expectations regarding future events represent Intro Crowd’s own assessment and interpretation of information available as at the date of this article.

No responsibility or liability is accepted by Intro Crowd for reliance on the contents of this article.

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