Property prices tumble in Cornwall

[soapbox]

Interesting article from the Telegraph

It is interesting. Glad they're coming down to be honest as Cornwall has been massively overpriced. Sad thing is that most of these properties are still miles out of reach for many people in Cornwall as average salaries are so low.

I'm Cornish, would love to move back to Cornwall but it's completely impossible as there's such a gap between the low salaries (not that there are any jobs in my field in Cornwall!) and hugely expensive property. So it's good that the prices have started to come down, hopefully it will get to the stage where people living and working locally will be able to buy locally again.

Sadly, though, it will just mean that more properties will be snapped up by the second-home brigade, like the ones who bought the bungalow next to my mum and dad's 'for our retirement' (they are in their early 30s FFS) and have been there approx 3 times in the last 5 years.

There is one agency in my home town that won't sell to people buying second homes, only to those who intend to live in the house full-time. Probably not a great business decision, but commendable.

It's really sad about the second home thing. You never know though - if we're all going to be much poorer cos of the credit crunch maybe people won't be able to afford to keep their second homes anymore, or am I just being naive?

yes, so pleased getting rid of many 2nd home owners, as we want to move home next year and this means we will be in with a fighting chance

maybe Cornwall should consider doing the same thing that has been done in parts of the Lake District in that people can only buy properties if they can prove they live and work in the area. They may only be able to do that as its a National Park

they do have restrictive covenants in force on ex-local authority and some new-builds

It is very sad to see lovely little villages that are mainly second homes left empty for most of the year. Nobody needs a second home. They should be taxed out of existence.

It is an almost impossible conundrum though. Tourism is one of the key employment sectors in Cornwall and if you start to restrict second home purchases then you start to restrict holiday homes (as the second home owners often rent them out). Once you start to restrict the availability of holiday homes then you potentially really damage the tourist economy.

If you restrict purchases to those working in Cornwall - whilst they might be more affordable - many, many fewer people will have jobs.

Soapbox - I never really thought about it in that way. I just feel really sorry for young people born and bred in these places having to leave.

I live in Cornwall - they might (and I say might) have dropped for overpriced houses down here, but there is no evidence of a price drop in lower priced houses at all. The lowest average wage down here is; £15995.20 and yet the lowest priced 3 bed house in the area is around £165,000.

soapbox - Tourism is one of the key employment sectors in Cornwall but that applies to things like holiday parks, etc.
It's not about restricting the availability of holiday homes. The issue with second home down here is about second homes that actually stay empty all year apart from the minute amount of time that the owners spend in them (one or two weeks a year). Thus dessimating small towns and vilages where local businesses have had to close due to 80% of homes in the area only having people in them for a couple of weeks a year.

I know - it is so hard to find the right thing to do.

For example, my friend who has a cottage in Cornwall which she lets out passes work onto all of the following people:

1. The letting agent
2. The weekly cleaner
3. Local trademen - it is repainted twice a year, she had a new kitchen and bathroom fitted last year using a local company and uses a local odd job man to do running repairs and keep the garden in order.
4. A lady in the village who prepares a welcome basket with cornish pasties, home made bread and jam and a bottle of wine.

That is before you then look at what the tourists spend directly when they are there.

I would probably really hike up the taxes on second homes, but give a huge rebate if you can prove you have let the house out for more than say 10 weeks a year (which I think is the cut off for tax purposes anyway).

Plus, added to the issues around housing - those of us who actually live, work and contribute here, also have to pay the hiked up prices that tourists do during the main holiday weeks. So it actually costs locals more in their day to day living, just for the priveledge of having roads clogged, increases in crime rates, noise levels, etc during certain weeks of the year (including most of the summer).

They should tax second homes but provide rebates for those who klet them out based on how often they are inhabited.

Nobody from this village (pretty part of south wales) could possibly buy on a local wage- you have to be well off or commute (we rent but dh is a commuter) to Bristol or Cardiff. The motoring cost is prohibitive (and no public transport where dh works) but his job closer to home pays £6k less, so if we can't afford to buy most people must be completely stumoped.