Croyde in North Devon and Newlyn in West Cornwall are predicted to be as expensive as Rock in 15 years time.

The predictions have been made by estate agent Knight Frank, which markets up-market homes.

The news comes at a time when a modest bungalow with wonderful views, in hot spot St Mawes on the south coast of Cornwall, has just sold for more that £3.5 million.

Liam Bailey, head of research at Knight Frank, said: "The health of these markets is very closely related to the health of the City economy and the wider business services sector in London and the south east."

And, because prices in some favoured locations are rising so rapidly, agents Savills have tried to identify towns which could become just as expensive in 15 years time.

They believe that Croyde will be as expensive as Rock in 15 years and they also tip Newlyn on the south coast of Cornwall as another potential contender for becoming a hotspot. They say that prices in North Cornwall have gone up by 99 per cent over the past five years.

Nigel Stubbs, head of Waterside and Country Homes at Miller Countrywide, thinks that Penzance and Newlyn could be the places to watch. He said: "If the proposed marina goes ahead then I think that area could well become very sought after. Penzance is a one-off town but importantly it has excellent communications because of the main line railway.

"Many people are more than happy to travel down by train. It is also accessible if they fly down to Newquay, and it is not inconceivable that at some point helicopters might be able to use the heliport, who knows.

"I would say that the market generally is reaching a plateau, but the money is still there for those very special houses which are a one-off."

But every house sold as a holiday home has implications for the wider economy and in areas with low income, such as Cornwall, the shortage of affordable housing is at the top of every politician's agenda.

All the district councils are struggling to cope with the growing numbers of people who cannot afford to rent a house, let alone buy one.

Mark Willson, general manager at H Tiddy's agents, which sells houses on the Roseland Peninsula in Cornwall, said: "We have had a record year and last month was a record month for us. Already this year we have sold six properties over £1 million.

"If you look at St Mawes the value per square foot varies hugely depending on where the house is, but one we sold last week works out at £830 per square foot, which is probably fairly representative of any of the properties in the village in the sought-after locations.

"But it has a knock on effect on other properties in waterside villages, prices in nearby Portscatho and Portloe are going up too."

And it seems that there is no end to the British desire for second homes, more people than ever aspire to one, and many are choosing the UK for holidays as concerns over terrorism and the environmental impact of flying grow.

In villages such as Rock, more than 70 per cent of the properties are holiday homes, and some smaller places, such as Helford village, are all but deserted for parts of the year.

article copyright WESTERN MORNING NEWS 

Comments (0)