Scarborough Is Becoming a Buy-To-Let Hotspot, as New Homes Are Being Developed

31st October 2018 posted in Property News

A third of properties bought in Scarborough last year were purchased either as second homes, or as places to rent out.

To put that in perspective, it’s higher than anywhere else in England, Scotland and Wales.

It puts Scarborough on the map as a buy-to-let hotspot.

Not all of these properties were bought with the intention of renting them out - some will simply be second homes - but it shows a growing market for landlords.

Approximately 920 second homes (which includes buy-to-let properties) were bought in Scarborough last year, compared to 750 the year before.

The Scarborough News reported these statistics based on HMRC data.

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Extra Charges on Second Homes Have Little Effect

These statistics are surprising, given new fees on additional properties were introduced in 2016.

An extra three percent on stamp duty was thought to discourage landlords and those looking for a second home of investing in new property.

But that hasn’t been the case. Many still feel like buy-to-let housing is a worthwhile investment.

At least, that’s the case in Scarborough. Whilst 33 percent of home purchases were second properties, in England as a whole it was 25 percent.

Around 232,000 second homes were purchased in England last year, with an estimated total value of over £70 billion.

Why Is This Happening in Scarborough?

It’s impossible to know for certain why there is such growth in the buy-to-let market.

One reason might be that first-time-buyers are being priced out of the buyers market, and so are relying on renting property.

Or, it could be that landlords are seeing Scarborough as a viable investment opportunity due to its growing popularity.

As these statistics include those simply looking to buy a second home, it makes sense to assume this is a significant factor for the growth.

Scarborough is a lovely seaside town, the perfect place to spend a weekend, or a couple of weeks in the summer.

It would make sense for people looking for a holiday home.

Plans for New-Build Homes

In other Scarborough-based property news, plans appear to be in place to develop 1,400 new homes in the town.

A proposal has been submitted to the local council, according to Yorkshire Coast Radio.

The building of new homes would help first-time-buyers looking to get on the market, who don’t currently feel they have a lot of options.

But there is some way to go before this project becomes a reality. Planning permission has not yet been granted.

The properties would be built across 131-hectares, at a location to the east of Scarborough Business Park.

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Estate Agents in Scarborough - Hunters Services

If you’re looking for a buy-to-let property, a second home, or even a first home in Scarborough - Hunters can help.

We have a local team of experts who will assist you through every step of your journey.

If you’re looking to buy a house, take a look at current listings here.

Or, if you’re looking to rent a place to live, you can find those listings here.

We look forward to hearing from you!