A WAVE of second-home owners hit by the economic downturn

are selling up, providing an unexpected boost for the

Westcountry's property market.

Estate agents in picturesque or rural parts of Devon and

Cornwall say many second-home owners are choosing to sell up

rather than pay the rising monthly bills for two properties at

once.

This is releasing homes for new buyers moving into the area

and for local people struggling to find a permanent home in the

region.

One estate agent in Cornwall has reported its best-ever

sales figures with “one property a day” changing hands in

July.

While there is no evidence of widespread recovery in the

market – prices are still falling slowly and mortgage lending

is low – the signs are that good-quality homes in select

locations are attracting an increased number of offers.

Patrick May, of Strutt & Parker's Exeter office, said

second-home owners were selling up because the rising everyday

costs associated with fuel and food were making it difficult to

justify owning two homes.

“There is no question that demand for second homes is

falling and people are selling up. Buyers regard them as a

luxury and in the current economic climate, luxuries have gone.

Ultimately, the people set to benefit are those living in the

area but can't yet afford to buy.”

He said people with second homes were selling up because

they were not seeing a capital growth and the rental income was

sporadic.

John Keogh, a retired Royal Marine officer from Tavistock,

West Devon, has put his second home – on Dartmoor – on the

market for £199,950.

He said: “My wife and I are nearly 70 and we have decided to

release the capital in the house rather than keep the

asset.

“We've been in the buy-to-let business since the 1980s and

we have often had to wait months to sell. We also understand

the housing market is cyclical and maybe it is not the ideal

time to sell.

“But at our stage of life, it's time to travel club-class

rather than standard.”

Sarah Lillicrap, of Lillicrap and Chilcott, which

specialises in waterside homes in Cornwall, said July had been

its best-ever month since setting up 2000.

“I think people have seen all the hype about the credit

crunch and are now feeling calmer because prices have been

adjusted. Cornwall has always been isolated from the rest of

the country to an extent because of the number of prestige

properties and their limited supply.

“Also, more people are choosing to holiday in the UK and

that makes the area attractive.”

Lillicrap and Chilcott sold one property every day in

July.

However, popular areas along the coast such as St Ives have

not yet been deserted by second-home owners.

Chris Wood, president-elect of the National Association of

Estate Agents, who has an office in Helston, Cornwall, said:

“We've had the best sales month for 12 months.

“People are still keen to get their hands on individual

properties in rural locations. These are houses of character

which people wish to buy. Some are holiday homes, but not

all.

“It is a tough market out there, but it is clear there are

pockets of the UK where sales are holding up and are

strong.”

In general, the more expensive a property is, the more

likely it is to find a buyer.

And despite a price fall over the last eight months, local

people, who often earn less than the average wage, still need

prices to fall further or lending conditions to improve.

But an influx of townspeople seeking a new lifestyle and

retirees anxious to find an ideal home in the region is keeping

the market buoyant.

Many are people who sold their main home 18 months ago,

fearing an economic downturn, started renting and are now ready

to return to the market.

One trend is a fall-off in the number of buyers from

London.

But Chris Watkins, senior negotiator at Charles Head and Son

in Salcombe, Devon, said: “What we have noticed is that the

London and South East market is much quieter than recent

years.

“People buying are more from the Midlands. I'm receiving

offers from Leicester, Leeds and Bristol. These people are not

as closely linked with the turbulent stock market.

“In the last three weeks, there have been signs of optimism,

although volume sales are down 50 per cent on this time last

year.

“In Salcombe, the majority of people are buying as an

investment for second homes and property lettings. I have yet

to see any evidence of people liquidating their assets and

moving away.”

Richard Copus, Devon spokesman for the National Association

of Estate Agents, said: “There is a positive attitude –

viewings have increased and offers are being made.

“Frankly, I think a lot of people are bored of hearing about

the credit crunch and want to get on with their lives.

“People who sold to rent have suddenly decided to buy and

take advantage of lower prices. They'd rather have their cash

in a property than in the bank.”