Timeshare To The Rescue For The Second Home Blight

Changes to the Capital Gains Tax (CGT) in today’s budget will put second homes under the spotlight once again, according to the Organisation for Timeshare in Europe (OTE).

A reduction in CGT from 40% to 18% could lead to more second homes coming on to the market, as owners seek to capitalise on their gains. However, with the escalation of house prices, particularly in key holiday spots such as coastal areas, these houses will be priced out of the reach of local buyers. This will once again put the issue of second homes blighting local communities on the national agenda.

The OTE, which represents the best of the timeshare industry across Europe, has a number of members in the UK which offer a “second home” alternative to holiday makers and bring a positive impact to their local communities.

“For some time we have been following the problem of second homes in some of Britain’s key holiday destinations,” comments Paul Gardner Bougaard, Chief Executive Officer of the OTE.
“It is interesting that alongside this tax change in the budget, the Prime Minister has also commissioned a review of the rural housing crisis which will look at a number of schemes councils can implement to prevent houses being sold as second homes. However, in our opinion, whilst these restrictions may restrict many people looking to realise their dream of buying a second home, it will not stop the “Super Rich” who will be able to circumnavigate any restrictions.

“Timeshare offers a second home alternative in popular spots without taking housing away from local residents. Most importantly timeshare attracts visitors all year-round who spend money at local shops and attractions. And because they are full all year*, timeshare stops villages being ‘dark’ in the winter months**.

“As an industry, we employ thousands of people in rural communities and bring in over £205 million*** per annum into areas reliant upon tourism. “

OTE has member resorts in Cornwall, Devon, South Wales, Scotland, The Lake District, Kent and Northumberland.

*Timeshare boasts all year round occupancy levels of 85% (in some cases rising to 100%) compared with hotels or serviced accommodation of just 59%.

**Villages with high second home ownership may be busy in the summer but are unoccupied in the winter.

*** OTE research in 2005 showed that timeshare holidaymakers bring in at least £205 million per year to the UK. These figures were based on occupancy levels and average self-catering tourist spend per week.


More about OTE:

OTE represents the majority of timeshare companies in Europe which are responsible for some 65-70% of all timeshare sales. These include major hospitality groups such as De Vere, Hilton, Sol Melia, and large independent timeshare developers, namely the Petchey Leisure Group, Club La Costa and Seasons Holidays.


* OTE surveyed European timeshare owners and received over 30,000 responses. The results showed that:
• 96% say it is a better experience than other self catering holidays
• 97% say it’s as good as or better than staying in an hotel
• 93% of timeshare owners say that timeshare compares favourably with other holiday types
• 67% say timeshare is good value for money compared with other holidays they have taken in the past
• 76% of European owners (a total of 1.45 million households) are pleased with their decision to buy timeshare
• 71% would recommend timeshare to others


www.ote-info.com