Number of second homes to rise to 340,000 by 2025

By 2025 the number of second residences will rise from 150,000 to 340,000, figures from the Centre for Economics and Business Research reveal.

The centre says these figures are accurate, assuming that there are no adverse changes to local taxation systems beyond those already announced, where from 2004/2005 local authorities will be allowed to reduce the council tax discount on second homes from the current level of 50% to 10%.

The centre adds this could accelerate the revival of urban areas near business districts, but also lead to further demand pressures in idyllic rural locations, which would drive property prices up even further.