New research from business consultancy Hargreaves Lansdown suggests that the long-held dream of owning a holiday home is fading, particularly among younger generations. The data reveals that a combination of soaring property prices, increased taxes, and the hassle of maintenance is making second-home ownership seem both unrealistic and undesirable.

Key Findings from the Research:

• Lack of Enthusiasm: A staggering 87% of people aged 55 and over don’t believe that buying a holiday home is realistic or desirable. This sentiment is even stronger than among younger people, though 69% of those aged 34-55 and 39% of those aged 18-34 also share this view.
• A Generational Divide: The data points to an aging group of people who were able to afford a holiday home when prices were lower. The peak age of holiday home use was 73 in 2021, up from 64 in 2011. For younger generations, the prospect of affording even one property, let alone a second, seems increasingly out of reach.
• The Cost Barrier: The biggest obstacle to second-home ownership is, and always will be, the cost. Beyond the initial purchase price, there are additional expenses such as higher stamp duty, potential capital gains tax upon sale, and a council tax supplement in some areas. These factors, combined with the rising cost of living, make it financially unfeasible for most.

Beyond the Financials: The Hidden Drawbacks

The survey also highlighted the non-financial drawbacks of owning a second home:

• Maintenance Headaches: Owning two properties means twice the bills, maintenance, and repairs. Many owners find themselves spending their holidays on DIY and upkeep rather than relaxing.
• Travel Challenges: The pandemic made many people realize that international travel can be unpredictable. Even within the UK, the variability of travel costs and time can make frequent trips to a second home less appealing.

A New Approach

While the traditional dream may be fading, the desire to have a place to escape remains. For those who still aspire to have a second home, careful long-term financial planning is essential. For many, a more practical solution may be to downsize and move permanently to a seaside or country location in retirement, rather than managing two separate properties.