Bevan, Mark Alistair

Rhodes, David John

White Rose Research Online

This is a repository copy of The Impact of Second and Holiday Homes in Rural Scotland.White Rose Research Online URL for this paper:https://eprints.whiterose.ac.uk/192849/Version: Published VersionMonograph:Bevan, Mark Alistair orcid.org/0000-0002-7794-8380 and Rhodes, David John orcid.org/0000-0002-8988-1750 (2005) The Impact of Second and Holiday Homes in RuralScotland. Research Report. Edinburgh: Communities Scotland eprints@whiterose.ac.ukhttps://eprints.whiterose.ac.uk/Reuse Items deposited in White Rose Research Online are protected by copyright, with all rights reserved unless indicated otherwise. They may be downloaded and/or printed for private study, or other acts as permitted by national copyright laws. The publisher or other rights holders may allow further reproduction and re-use of the full text version. This is indicated by the licence information on the White Rose Research Online record for the item. Takedown If you consider content in White Rose Research Online to be in breach of UK law, please notify us by emailing eprints@whiterose.ac.uk including the URL of the record and the reason for the withdrawal request. P  R  E  C  i SA summary series of recent research from Communities ScotlandNo 70The impact of second and holiday homes on rural communitiesin ScotlandSecond and holiday homes were highly localised in rural areas of Scotland – there were broadswathes of rural Scotland where the number of second and holiday homes was small relativeto the housing stock as a whole. The more remote rural areas had the greatest concentrations of second homes. Indeed, a keydivide in Scotland was between very remote rural areas and all other areas. Approaching onehalf of all Scottish second homes (47 per cent) were within these very remote areas.Census figures from 2001 revealed that social rented accommodation tended to be morelimited in those areas of rural Scotland where there were high proportions of second andholiday homes. This pattern has implications for the housing opportunities of people wholive, or want to move to these areas. Council tax records should become the most promising source of information for examiningthe number of second homes at local authority level in the future, as local authorities changethe way that they identify these properties. However, this source needs to be supplementedby a consideration of the extent of holiday lets that qualify for business rates within ruralareas as well. Although second and holiday homes contributed to an uplift in property prices in the casestudy areas, it is important not to view their impact in isolation from other factorscontributing to changes within rural communities and especially pressures on local housingmarkets from other groups such as commuters, retirees, or people wanting a lifestyle change.The most significant issue for nearly all respondents across the five case studies was the lackof affordable housing to provide a viable alternative for people on lower to medium incomes. The impacts, both positive and negative, of second and holiday homes touch on a diverserange of factors that affect the sustainability of rural communities. These factors, such ashousing, services and facilities, local economies and social and cultural vitality cut across avariety of policy areas, requiring effective partnership working between agencies and ruralcommunities.Second and holiday homes can have significant implications for the maintenance ofsustainable rural communities. Until recently, policy instruments to address the impact ofsecond and holiday homes have been minimal. However, across the UK, policy hasincreasingly turned towards direct intervention in this aspect of rural housing markets.Communities Scotland identified the need for an evidence base to provide a clearframework for the definition and assessment of the potential positive or negative impactsof second and holiday home ownership upon local housing markets, rural economies andcommunities.The key findings of the study were:PRECiS.......The number and distribution ofsecond and holiday homes in ruralScotlandAn analysis of the 2001 Census showed thatthere were 29,299 second and holiday homes inScotland, comprising 1.3 per cent of the housingstock. Between 1981 and 2001 the number ofsecond and holiday homes grew from 19,756 tothe figure of 29,299, with the majority of thisincrease occurring between 1991 and 2001.Nevertheless, census analysis showed that thegreatest growth in second and holiday homeswas in urban areas, especially Edinburgh andAberdeen.Second and holiday homes were highly localisedin rural areas of Scotland – there were broadswathes of rural Scotland where the number ofsecond and holiday homes was small relative tothe housing stock as a whole. A key divide inScotland was between very remote rural areasand all other areas. The more remote rural areashad the greatest concentrations of second homes,with one eighth of all household spaces in the'very remote' rural areas being of this type.Approaching one half of all Scottish secondhomes (47 per cent) were within these veryremote areas. Figure 1 shows the distribution ofsecond and holiday homes in rural Scotland asthe proportion of second and holiday homes inrural wards. Percentage of second and holidayhomes by rural ward, 2001Local authorities with the largest number ofsecond and holiday homes in 2001 includedArgyll and Bute (5,158), and Highland (6,215).Other local authorities with over one thousandsecond and holiday homes includedAberdeenshire, Dumfries and Galloway,Edinburgh, Fife, North Ayrshire and ScottishBorders. In contrast, those authorities with thesmallest number (under 50) includedClackmannanshire, East Dunbartonshire, EastRenfrewshire and Midlothian.There were very limited alternatives for peopleto meet their housing needs from within thesocial rented sector in rural areas where thereare high concentrations of second homes. Astable 1 shows, the proportion of social rentedaccommodation decreased in a gradient as theproportion of second/holiday homes increased,whereas the extent of private renting increasedas the proportion of second/holiday homesincreased. It must be stressed that there was nodirect causal link between second homes and theavailability of social rented accommodation, butthe pattern highlighted here has implications forthe housing opportunities of people who live, orwant to move to these areas.C o m m u n i t i e s  S c o t l a n d  P r e c i s  N o  7 0Figure 1 Percentage of second and holiday homes by rural ward, 2001Table 1: Availability of social rented accommodationby varying concentrations of 2nd/holiday homesProportion of second/ Proportion of holiday homes in rural ward    social rented %Less than 1% 26.51% to less than 5% 19.25% to less than 10% 17.410% or more 16.7All rural areas 23.7Source: 2001 CensusImpacts on rural communities:evidence from the case study areasLocal housing markets and second and holidayhomes Five case studies were carried out in Arrochar,Luss and Ardconnel and East Lochfyne; IslayNorth, Jura and Colonsay; Elie, St Monans andPittenweem; Gairloch; and Strathspey. A numberof differences were apparent between the casestudy areas. In the Fife case study area, thevillages of Elie and Pittenweem were the focus ofintense pressure from second and holiday homes,which ran counter to general trends in theremainder of most of the rest of this authority. Aconsiderable proportion of demand for housing inthe remote, fragile islands of lslay, Jura andColonsay were also attributable to demand forsecond and holiday homes. In the other case studyareas, demand for second and holiday homes wasmore variable. Some villages and hinterlands werethe focus of intense pressure from this type ofaccommodation, whereas in other parts of thesecase study areas other forms of demand weresignificant, such as in-migration from commuters,downshifters, or people retiring to these areas. The view of the majority of respondents was thatdemand for second and holiday homes hadcontributed to an uplift in house prices. Inlocalised areas, demand for second homes was akey driver in local housing markets. Even ifsecond and holiday home owners were notcompeting directly in all parts of a housingmarket, such as accommodation attractive to firsttime buyers, the general impact had been to dragprices upwards. Nevertheless, if demand forsecond and holiday homes were removed fromthe equation, it is still doubtful that manyhouseholds employed locally would be able toafford to buy a home. Similar difficulties inaffordability were also apparent in areas wheresecond and holiday homes were far less prevalent.Considerable pressure for housing was alsoevident from other groups such as commuters,people moving to retire, or people moving for achange of lifestyle or because they could workfrom home. The key issue for nearly allrespondents across the five case studies was thelack of affordable housing to provide a viablealternative for people on lower to mediumincomes. Demand for housing was not the only factoraffecting house prices. The supply of propertiescoming on to the market was crucial, particularlyin the island areas. One reason for the severeshortage of properties available to buy in areassuch as Jura and Islay was the importance ofinheritance and a desire to retain the family home,which helped to contribute to the number ofsecond and holiday homes in these islands. Impacts on local economiesThe views of respondents varied as to perceivedimpacts on the economies of the case study areas.Some respondents were sceptical of the amount ofmoney that people using second and holidayhomes really contributed to the case study areas.However, other respondents acknowledged thatsecond and holiday homes not only broughtbenefits in relation to a direct spend within thecase study areas, but also had brought otherbenefits through the generation of employment.Further, other research has drawn attention to theeconomic impact of permanent in-migrants intorural areas such as commuters (Stockdale et al,2004)1, and any assessment of economic impactson rural communities needs to reflect the effects ofthese different groups. Many respondents in this research were careful todraw a distinction between second homes on onehand, and commercial holiday lets on the other, interms of impacts on rural communities. Bothsecond homes and properties let out commerciallyfor holidays have an impact on the supply ofaccommodation in a local housing system – thebalance between effective and ineffective housingstock. The fact that respondents generally viewedholiday lets much more positively than secondhomes was mainly in relation to economicimpacts. Holiday lets were seen as an importantdirect source of income for local people, as well asthe additional general spend that tourists mightbring to an area. Whilst second homes were generally viewed asless beneficial, a further consideration was theextent to which second and holiday homes wereoccupied throughout the year. PRECiS.......C o m m u n i t i e s  S c o t l a n d  P r e c i s  N o  7 01Stockdale, A., Findlay, A. and Short, D. (2000) The repopulation of rural Scotland: opportunity and threat, Journal of Rural Studies, 16.One option to consider would be the developmentof purpose built second and holiday homes, sinceit might be expected that this approach mightenable the economic benefits that second andholiday homes would bring to an area, whilstlimiting the impact on local housing markets.However, in areas where there are severeconstraints on the capacity of infrastructure tocope with new development, then suchconstruction might be at the expense of residentialnew build for permanent occupation. Further,there was very limited appeal amongst secondhome owners in this study for propertiesspecifically designed as second homes or holidayaccommodation. Social impactsThere were very mixed perceptions as to socialimpacts of second and holiday homes. Viewsranged from anger at the treatment of somecommunities as little more than privateplaygrounds to a sense of the positive and valuedcontribution that second and holiday homeowners added to the social and cultural vibrancyof rural areas. Many second home owners havevery strong family links with the communitieswhere their second home were located,particularly on the islands. Other second homeowners had developed strong links withcommunities over the years they have occupiedtheir second homes. One view put forward bysome respondents in the case studies was thatnegative social and cultural impacts were moreassociated with permanent in-migrants in ruralcommunities - the impacts of second homeowners in this regard were mitigated by the factthat they were just not present to the same extent.Another factor was that broad, deep seatedchanges were taking place within society as awhole, and these changes were having asignificant effect on the traditions and culture inrural areas of Scotland, over and above anyimpacts that might be laid at the door of secondhomes. However, where second and holidayhomes were seen as having a more detrimentalimpact on communities was in relation to schoolrolls and the viability of services and facilities. The way forwardSpecific policies to control second homes wouldnot address the broader pressures on ruralcommunities from other groups in society such aspeople commuting, retiring, or moving becausethey can work from home, or want a change oflifestyle. Nor is it likely that specific policies onsecond homes would tackle the continuinglimited supply of affordable housing in somerural areas. The overwhelming message frommany respondents in the five case study areas inresponse to pressures faced by the number ofsecond and holiday homes in their areas was forthe development of affordable housing.  A crucialaspect of this accommodation should be that itremains affordable and accessible for householdson low incomes in perpetuity. A further issue toemerge from a couple of the case study areas,particularly the islands, was the need foraccommodation to meet the needs of public sectorworkers.The impacts, both positive and negative, ofsecond and holiday homes touch on a diverserange of factors that affect the sustainability ofrural communities. These factors, such as housing,services and facilities, local economies and socialand cultural vitality cut across a variety of policyareas, requiring effective partnership workingbetween agencies.However, it is important not to see the impact ofsecond and holiday homes in isolation from otherfactors contributing to changes within ruralcommunities and especially other pressures onlocal housing markets. Thus, whilst strategies andpolicy responses need to take account of theimpacts that second and holiday homes have,they need to situate these impacts within a muchbroader context in relation to the diverse range offactors and processes affecting the sustainabilityof rural communities. About the studyThis research was conducted by Mark Bevan andDavid Rhodes, from the Centre for HousingPolicy, University of York. The research had fourmain stages. The first was a review of theliterature on second and holiday homes in theUnited Kingdom. Secondly, an assessment wasundertaken of the various sources of data that canbe used to examine second and holiday homes inScotland. An analysis of the number anddistribution of second and holiday homes acrossrural areas of Scotland was undertakenprincipally using the 2001 Census. Third, theimpact of second and holiday homes wasexplored in five case study areas drawing uponinterviews with stakeholders in each area. Finally,interviews were conducted with second homeowners to examine their views and experiences ofowning a second home in rural Scotland. Further informationFor further information about this research pleasecontact Ralph Throp, 01463 711272, or by email,ralph.throp@communitiesscotland.gsi.gov.uk.October 2005PRECiS.......

The Impact of Second and Holiday Homes in Rural Scotland

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The Impact of Second and Holiday Homes in Rural Scotland

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