Friday, December 8, 2023
Proven Partners, experts in luxury real estate marketing, have unveiled a ranking of 20 sought-after destinations for UK second-home investors, assessing their affordability. This release coincides with a notable surge in property taxes for second homes across UK regions.
The rankings took into account various factors, including property prices, taxes, fine-dining expenses, premium car rental rates, flight costs from the UK, and potential Airbnb revenue. Drawing data from 3,600 luxury property listings on platforms like JamesEdition and others, the study assigned an “affordability score” out of 10 to each country.
Surprisingly, Ireland emerged as the most affordable country for luxury second homes, achieving a perfect score of 10. With an average price of £453,808 (€521,879) for a 3-bed waterfront property, coupled with a low-tax environment and favorable prices per square foot, Ireland presents itself as an appealing investment option.
Its proximity to the UK, with summer flights averaging £68 (€78) and only an hour away, further enhances its attractiveness for weekend getaways.
Colin Hannan, Co-CEO at Proven Partners, remarked, “Ireland, often perceived as expensive, offers stunning coastal properties at a fraction of the cost in the UK, especially with the rising taxes there.”
This study gains significance against the backdrop of recent announcements in the UK. Regions like Pembrokeshire are implementing a 100% council tax premium on second homes, and Scotland is poised to double council tax on such properties. These measures, aimed at addressing local housing shortages, are substantially increasing the financial burden on second-home owners in the UK.
Ronan Hannan, Co-CEO at Proven Partners, added, “The luxury segment of the real estate market has rebounded since the pandemic, and we’re witnessing substantial growth in emerging markets.” He further suggested, “While there is still strong demand for second homes in more traditional markets such as France and Spain, investors seeking value should explore more exotic destinations like Mauritius or South Africa.”
Tuesday, January 2, 2024
