Record numbers now renting a second home to avoid Stamp Duty costs of buying their own bolthole

The number of properties being rented rather than bought for weekday or weekend use or as holiday home has hit a record high, Hamptons International claims.

The Hamptons International Lettings Index – which uses data from 90,000 homes let by the Countrywide Group – found the number of properties rented as second homes in Great Britain reached 13,680 in 2017. This was 136% more than in 2007 when there were just 5,800.

The average rent of a second home was also found to be 24% higher than a main property at £1,060 per month, reaching £2,030 in London.

Aneisha Beveridge, analyst at Hamptons International, said: “The number of people renting second homes has reached a record high.

“The additional Stamp Duty on second home purchases introduced in April 2016 increased buyers’ upfront costs and resulted in more people deciding to rent a second home rather than buy.

“The places second home renters are choosing include a mix of town and country.

“Second home rental hotspots reflect today’s lifestyle choices from the pied-à-terres in towns and cities, close to work, schools and all the amenities that city life has to offer, to rural and coastal locations perfect for escaping the trappings of a busy urban life.”

Separately, the average costs of a new let during May rose to £953 per month, up 1.3% year-on-year, the index found.

This was a slowdown from the 1.9% growth in April.

Inner London and the North of England both saw annual drops in new rents, declining 0.6% and 0.1% respectively.

This put average rents for inner London at £2,550 and at £622 in the North.