URBAN SECOND HOMES: Temporal-D Dwelling in London
open house international Vol 34, No.3, September 2009 Urban Second Homes: Temporal-Dwelling in London
Karen Lee Bar-Sinai Abstract Despite the extensive attention given to second and recreation homes in rural areas, their urban appearance has had only limited examination. This paper focuses on the trend as it is manifested in London and suggests urban second homes are an emerging phenomenon in contemporary cities. Drawing links between recreation homes and other aspects of mobility and dwelling in the global metropolis, the phenomenon is situated beyond local housing markets and placed in the context of globalization and urban restructuring. The part-time dwelling patterns it introduces are shown to challenge attempts to define and evaluate its spread. Additionally, the cross-spatial nature of urban second homes turns their owners into temporal occupants of several built environments simultaneously. They are thus defined both as a product and an emerging force in global cities, and as such beg unique attention. The phenomenon calls for the development of effective monitoring and tracking systems for addressing its development in cities. Lessons from the rural experience are used to propose policy approaches and the challenges posed by property market environment are emphasized. It is concluded that the transnational nature of urban second homes, and the inter-city connections they form and represent, call for cooperation between cities in addressing them. This may allow the creation of a global data-base and policy-bank as part of the challenge to maintain sustainable cities in the face of disappearing national borders. K e y w o r d s : Second Homes, Recreation Homes, Multiple Dwellings, Cities, London.
INTRODUCTION Globalization has profoundly altered contemporary cities - transforming their structure, appearance, and heralding stronger links between them, as well as between their housing and property markets (Sassen 1991). Adjoined by a greater degree of mobility, these shifts have enabled a growing world elite who practice new forms of touring, moving, and living across places (Hall and M端ller 2004). This paper will argue that these shifts have also influenced second home ownership and the practice of multiple dwelling. In its emerging form, the phenomenon has acquired a transnational nature (Paris 2006), and in contrast to the predominantly rural nature of the trend in the past, this paper will demonstrate that temporal-occupancy can currently be traced to the heart of cities. Urban second homes, as they are titled here, will be defined as a challenge to the conventional notion of home (McIntyre et al. 2006) and shown to render such terms as migration and tourism limited in accounting for cross-city dwelling. It will be shown that the difficulty extends to setting policies in response to these trends, as they call for the revision of the role and use of housing in the global city. 8
This paper will propose to view urban second homes independently and separately from recreational homes in order for their particular implications to be understood in the context of global urban restructuring. To this end, temporary dwelling in London will be explored to define the phenomenon, highlight its theoretical implications and discuss the challenges it poses to the sustainability of cities as they become sites for global and transnational dwelling patterns. SECOND HOMES: AN EVOLUTION OF A TREND Second homes as a form of recreation have a long historical ancestry rooted in ancient Egypt and evident in classical Rome, where multiple homes or villas served their owners at different times of the year (Coppock 1977). More recently, they have been a rather strong tradition in Scandinavia and North America, and also across Europe (Gallent et al. 2005). Second homes were seen as an acceptable part of a "rural scene" and generally seen as related to the extensive development of outdoor recreation, have been documented since the 1930s
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(Coppock1977). In the UK, the ownership of second homes, usually in the form of a summer-cottage, has been a common trend for several decades, and is especially evident in such coastal or bucolic areas as Cornwall, Norfolk and Devon. Is something new happening with second homes in the UK nowadays? It seems so. The Commission for Rural Communities report (2006:12) indicates that a significant amount of second homes possessed in the UK today are located within cities. In order to evaluate their extent and spread in London, the most recent 2001 census including resident-based statistics has been scrutinized. Selected results presented in the table below (table 1) show a relatively high degree (10-16%) of second home ownership in some of London's affluent neighborhoods in contrast to their low relative volume in London overall (0.5%). In addition, the above mentioned report adds a more recent estimation (dating 2006) referring to the City- London's financial core, and indicating the existence of a significant level (27%) of urban second homes within it. In spite of the high volumes of urban second homes in some of London's neighborhoods, they have scarcely been referred to previously. Their insignificant indication in the City of London Information Report (Rees 1995), based on the previous 1991 Census, exemplifies how easily they may be overlooked. Categorized as visitors, second home owners were counted in the report under the same category of those residing in temporary accommodation, despite the acknowledgment that 1
the latter includes those "who have more than one home and consider their main residence to be elsewhere" (Rees 1995:5). The phenomenon is thus not only ill-categorized but also under-evaluated by officials, perhaps due to the lack of awareness of the extent and potential impact that urban second homes may have on the urban environment. Although the recent 2001 census reflects a progress in recognizing second homes, an actual professional discussion around the issue has yet to be developed in the London context. The growing market demand for temporary use ownership is reflected in another trend, which may be seen as an exemplifier of the former. Rather than manifesting in the regular housing market, this parallel trend takes form in the local hotel industry. Advertisements appearing around London nowadays call investors to "make money while others sleep"1 through the purchase of a hotel room. According to the marketing scheme, owners are allowed to stay in their 'room' for up to 52 nights annually free of charge, and receive a percentage of the room rent income during the remaining part of the year. Though positioned on the border between holiday accommodation and second homes, the flexible temporal occupancy enabled by this form of property ownership, allows the owners to practice a similar form of partial dwelling in the city, according to their choice of times during the year, and free from the costs and burden of maintaining the property in between their visits. Coupled and viewed together, the two trends indicate that temporary-dwelling in London is increasing and
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open house international Vol 34, No.3, September 2009 Urban Second Homes: Temporal-Dwelling in London
Table 1. Second homes in selected London neighborhoods (produced by author)
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spreading in various forms, and therefore demanding particular attention. GLOBAL CITY, WORLD DWELLING The growing concentration of urban second homes in London is linked to the major transition the city has been undergoing in the past few decades. Sassen (1991) describes how the emerging economic centers in the 1980 heralded the rise of the international property market in global cities. Local property markets quickly responded to the growing and new form of centrality the city undertook, and a rapid rise in property prices followed. Recognizing that this has not meant an even effect throughout the city- rather a specific product of demand for space in wealthy and central districts and neighborhoods (Sassen 1991:191-2), helps shed light on the above findings. The choice of a second home in highly sought-after neighborhoods is in line with Sassen's (1991) analysis. Although the UK census does not indicate the nationality of the second home owners, given the costs of maintaining an expensive and yet mostly vacant second property in such areas in London, it is most likely that the majority of the owners are non-local residents. As from the outset second homes have been largely associated with highsociety (Coppock 1977), there is a basis to assume that current urban second home owners are also members of an affluent world elite as well. The high volume (27%) of urban second homes in London's financial heart - The City- where housing is limited and considerably expensive further strengthens the assumptions regarding the financial ability of their owners. Moreover, it highlights the importance of financial centrality as a location-selection criterion, and indicates that urban second homes are not necessarily purchased for recreational purposes. Concentrations in other luxurious London locations (i.e. Marylebone, Knightsbridge, Hyde Park) suggest that cultural forms of centrality are important factors as well. Overall, the presented volumes signal that the phenomenon of second home ownership has diversified to include cities, and that the criteria behind the location choice altered itself accordingly- as formerly sought after rural qualities are replaced with various forms of urban centrality. The emerging urban form of second homes calls for a revised framework for understanding and approaching them in contemporary cities. Though the growing urban and transnational nature of the 10
phenomenon has been noted (Paris 2006), and the second home debate has been updated in light of the trends in mobility and migration (Hall M端ller 2004; McIntyre et al. 2006), the phenomenon is still mainly linked to tourism and rural studies. Limited attention has been given to the implications of the diversifying geographical locations of second homes, as well as to the shape and influence they have in global cities. Second home dwelling in global city centers alters existing urban environments in various forms. The popular urban second home neighborhoods shift from local focal points to become attractive global spots. Their appearance changes accordingly, and as Sassen describes (1991) the existing supply of services quickly adapts to offer global class goods as well. Former locals may then find their surroundings are beyond their means and that they are forced to relocate. Gradually, super rich, partly-occupied islands may form in the city. In conjunction with the segregation tendencies noted in contemporary cities (Soja 2000), urban second homes may further accentuate social and spatial polarization trends which characterize cities as they are globalized. Urban second homes may therefore represent both a product of globalization and a shaping force in the urban surrounding, altering both the spatial and the social dimensions of cities. The entrance of global second home buyers into cities both echoes and draws parallels with recent trends in world-wide gentrification. As Lees (2003) has identified, a process of "super-gentrification" is occurring in Brooklyn Heights, New York City, characterized by a scope and effect beyond the familiar. Led by a new form of elite- richer, more mobile, and globally connected (Lees 2003), it suggests that there are not only new agents leading gentrification today, but also a more extreme form and consequences to the process. As second homes infiltrate local urban surroundings they act as a similarly strong external force with social and spatial ripple effects. Although the extreme outcome may seem similar, the part-time presence of urban second home owners, and namely their periods of absence, challenges the city's vitality further. Additionally, the fact they may be replacing former gentrifiers situates them in a great distance from the original notion of gentrification as it was identified in the late 60s. This underscores the need for a revised theoretical terrain for understanding housing markets and dwelling patterns in contemporary cities.
SECOND HOMES AND LOCAL CONTEXTS The urban occurrence of second homes is also important in terms of their impact on the urban built environment. As this trend has only had limited examination in cities, there is insufficient empirical data for estimating their effect on their surroundings. Nevertheless, the vast experience and lessons 11
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Part-time dwelling greatly reflects the altered notion of "home" and poses a challenge to that of migration. As Massey and Jess (1995) point out, an increasing percentage of the population today has no usual residence, but rather several ones in different locations amongst which time is divided. This strengthens the transitional nature of first and second homes identified by Coppock (1977), along with their increasingly transnational nature as identified recently by Paris (2006). Both may suggest that the notion of the familiar hierarchy of primary and secondary homes (referring to respective degrees of use) is becoming obsolete. In addition, due to the changing nature of work, several disparate living patterns may occur even within a single household, posing an additional challenge to current approaches. Second home owners therefore testify to the disappearing relevance of a "home" as a representation of a singular "household" and demonstrate the current complexity of the notion of "dwelling" both as a noun and as a verb. The dwelling patterns urban second home owners practice challenge attempts to categorize them and thereby underscore absent notions within debates regarding home, mobility and the city. An attempt to define the phenomenon based on existing terminology may result in describing the owners as "part time super-gentrifiers" whilst their dwelling pattern may be referred to as "temporal-occupancy". However, both references remain vague and reveal the difficulty of capturing seasonality and temporality dimensions of emerging dwelling patterns with existing terminology. Moreover, as urban second home owners dwell across cities or various locations, they partake in several housing scenes, effectively acting as part-time occupiers in a few disparate settings at the same time. Their parallel impact on several built environments demonstrates the limits of understanding local housing markets within their geographical boundaries. Rather than viewed independently, housing markets in global cities must also be seen through the links formed between them, and the spatial practices that these in turn bring about. The seasonal dimension of second home dwelling situates their occupiers in a gray area inbetween tourist and migrant (Williams and Hall 2000:19). The lack of suitable terms and definitions hinders the ability to understand and respond to the phenomenon in different contexts. This is fur-
ther underscored by the suggested mediating terminology referring to quasi-migration (Casado-Diaz 1999) which further emphasizes the closeness of tourism and migration, rather than assisting their distinction. The dynamic nature of second homes as well as the potentially changing relationship between them and first homes introduces additional challenges as they are used differently in time. They may serve as semi-retirement sites on a part time basis for the initial period, and only later become primary residences (Coppock 1977). There may also occur an entire loss of hierarchy amongst first and second home as implied by Massey and Jess (1995). The primary home may no longer be the one one spends the most time in, but rather the one closest to the occupiers' heart. Existing terminology is therefore gradually rendered incapable of capturing the various dimensions that temporal dwelling introduce today. The challenge in estimating the occupation levels of second home owners further hinders the ability to evaluate the impact they entail on their physical and social surroundings. First, with the changing nature of work and home, it may be difficult even within single household units to distinguish a first from second home in a household based survey such as the national census. Moreover, even when a second home does serve as an alternative dwelling place, there are immense methodological difficulties in estimating the extent to which it serves as such, or monitoring the growth of the phenomenon (Happle and Hogan 2002). The national-basis of the census adds to the challenge, as it does not allow for the drawing of conclusions regarding transnational and inter-city dwelling links. The limited data provided here highlights these difficulties (i.e. the absence of owners nationalities, as well as degrees of actual occupancy) and in lack of effective procedures to track the phenomenon there exists a great challenge in drawing firm conclusions or setting effective policies.
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CHANGING NOTIONS: HOME, DWELLING, DWELLERS
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from UK and European rural areas with high rates of second homes provide a helpful testing ground for understanding and addressing second homes in cities. As second home properties are often purchased for seasonal or part time occupation, buyers tend to spend a limited time in them. Properties left empty for long periods have a twofold environmental and social effect on the urban landscape. First, as second-home owners replace the permanent local dwellers, the local services, business and community may be adversely affected by a decrease in members and clients. Secondly, as the housing stock is limited and under high demand, property values may rise beyond the reach of local residents, who often have lower incomes than the second home buyers (Coppock 1977; Gallent et al. 2005). Due to the scarcity of houses and rising property values, younger inhabitants are forced out and left with no alternatives but to relocate. In addition, they leave behind them an aging generation and part time residents, sharing empty towns with vulnerable sustainability and limited future prospects. Although several decades ago a tendency to dramatize the conflicts between second-home owners and locals has been noted (Coppock 1977), and despite the fact that some local sellers have gained considerable profits from selling their properties for high values, current literature still suggests that the proliferation of second homes in rural areas poses a threat to the future of rural communities (Gallent et al. 2005). Though the average local Londoner may not be able to afford to purchase an apartment in the popular city's second-home neighborhoods, viewing this phenomenon in light of the high volume of investors-activity in the London housing market ("buy to sell" and "buy to let"), demonstrates its potential threat. This is especially pertinent as it has been shown that these types of investment activity tend to focus on smaller units, and hence on the more affordable ones. These appear to be in highest demand with investors (Craine and Mason 2006), and first time buyers could be priced out by this growing market demand. Combined with the increasing demand for urban second homes these two tendencies are reducing choice and availability for lower-income owner occupiers. Though Craine and Mason (2006) conclude that such threats are outweighed by benefits of the marketfunction, there might come a time in which aside from affordable housing schemes, few will be able to afford to buy a home in London. The growing 12
demand for second homes in its selected neighborhoods may be accentuating this tendency. Urban second homes should also be seen in light of wider urban planning and housing strategies (Gallent et al. 2005) in urban as well as rural areas. In the context of London, the urgency to meet housing needs is frequently-mentioned and has also been expressed in the vision and objectives presented as part of the section entitled "Towards the Mayor's housing strategy" in the official municipal website. Together with current discussions regarding the further development of the city (such as around Thames Gateway), these two indicate an intention to meet housing demand through the construction of additional units and further spatial expansion. Currently, additional urban development takes place around the city whilst urban second homes proliferate and form temporal vacancies within it. In the "Shrinking Cities" project (Oswalt 2005) urban development and growth are criticized in light of what is described as a vast urban shrinkage due to population drainage. This process is deemed to result in vacant urban areas hollowing out as the cities surrounding them are further expanded. Seen through this lens, urban second homes may be similarly observed to entail even a deeper threat than shrinkage. Disguised by ownership, they carry an illusory effect of occupancy, yet actually remain empty for the majority of the time. This stresses the need to recognize the imminent threat urban second homes may introduce, to develop methodologies for tracking them and measuring their effects, and for finding effective tools to mitigate their presence. The relatively low share of urban second homes in the whole city of London (0.5% according to 2001 census), should thus not mislead policy makers. This rate masks the inherent geographical selectivity of the trend to concentrate in specific luxurious neighborhoods which provide the lifestyle urban second home dwellers seek. While such noteworthy rates as found in Knightsbridge and Belgravia would draw attention if they were to occur in rural areas, they are easily overlooked in the urban environment. Though London as a whole may be able to absorb this amount of part-time dwellers, its specific neighborhoods may not. In the City of London, where second-homes account for 27% of the total housing stock, a real threat may be posed to local communities and their services. The link to other localities in which the part time dwellers reside at other times places different surroundings
RECOGNIZING AND ADDRESSING SECOND HOMES: CURRENT AND FUTURE POLICY The decision to address the issue of second homes through policy-making raises ethical as well as technical difficulties. One argument is that planners have no right "to contemplate the problems of second homes" until they solve "those of the first homes" (Coppock 1977: 197). Another ethical question is whether planning should deal with occupancy, as it concerns the owners' will and free choice. In addition, there exists a general difficulty in restricting a neo-liberal trend in an open property market such as in London, which greatly depends on the lack of regulations or boundaries. Nevertheless, the challenge in designing policies for steering current urban second homes is linked to the broader motivation to protect local environments and ensure their sustainability in face of global forces. As such, and in light of the wide recognition of the enduring social responsibility planners still possess (Gallent and Tewdwr-Jones 2007), a policy response to urban second homes as a trend is still highly relevant. As first and second homes are inherently interlinked and their degree of occupancy may impact the sustainability of entire urban neighborhoods, their spread and consequences should be addressed. This is especially pertinent to London, where supply of housing is deemed to be falling short of demand, and is coupled with a diminishing ability of many to partake in the housing market. Both tendencies have been further accentuated by the influx of global capital into the city and are hence related to urban second homes as well. In this context, gaining a first, not to mention a second home in London is becoming a distant dream for many. Therefore, ethical and practical difficulties in addressing urban second homes are not sufficient reasons to disregard this phenomenon. Policy may restrict access to second homes directly as well as indirectly to create a greater balance in access to dwellings in the city, and between London's urban competitiveness and its future sus-
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tainability. Until recently, second-homes in the UK enjoyed a generous 50% discount in council tax because they were only partly occupied during the year. A revised policy in 2003 allowed councils to charge second home owners up to 90% of the full council tax (Commission for Rural Communities Report 2006), with the intention that the additional income from the 100,000 UK second homes would be redirected back by local councils and help fund additional social housing. Nevertheless, as this report shows, the revised policy did not provide the desired effect, and rural homes are still beyond the reach of the rural population. This demonstrates the limits of council tax as a policy tool for controlling the spread of second homes, and perhaps indicates the limitations of a direct tax based policy in general. The key to addressing urban second homes is rooted in viewing them in light of the wider housing context, and hence in relation to other housing policies (Gallent et al. 2005). For instance, new projects in popular second home neighborhoods could aim to include social housing schemes to introduce greater population balances. Another possible channel lies in encouraging time-share schemes similar to the "Guest Invest" hotel-room ownership model in light of their larger environmental sustainability. In addition, it would be valuable to develop efficient and reliable methods of tracking and evaluation -both of second homes' spatial spread and of the impact they have on their immediate vicinities. This may set a better ground for policies set to balance their presence and ameliorate their affects. The limited theoretical framework for evaluating temporal dwelling patterns is another hindrance to the elaboration of effective policy. This calls for the development of new methodological tools for estimation of a dwelling use frequency. Certain proxy indicators may be utilized to this end to allow determining not only whether a tenant is a second home occupier, but also the degree of his occupancy. In essence, a tool that measures the effective degree of temporal occupancy is required. Such a tool, as has been explored in the case of Jerusalem (Bar-Sinai 2007) allows to measure the probability of a dwelling being occupied ranging from fully occupied to fully vacant. Therefore, it allows classifying the temporary owners by their degree of occupancy, setting a new approach towards the phenomenon and assisting in quantifying temporary occupancy. In light of the global nature of urban second
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under the same parallel threat. In light of the limitation of urban based statistics to capture complex conditions emerging in global cities, urban second homes should be addressed on neighborhood, city and global scales in order to be dealt with effectively.
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homes, an inter-city study is also highly relevant to performing a comprehensive and accurate evaluation of their spread. Combining these measurements may ensure greater sustainability both on a local and global level. In the former, it may ensure that London's less affluent population is not gradually being denied of entire neighborhoods in the city, whilst in the latter, cities may become better equipped to deal with world tenants and temporary dwelling practices.
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CONCLUSION As cities continue to globalise new forms of living and dwelling are enabled in and between them. In the context of this increased mobility, London has witnessed the growth of urban second home rates in its prestigious neighborhoods. Whilst this phenomenon has been widely explored in the rural contexts, its appearance in cities has hitherto not been sufficiently examined. This paper has analyzed urban second homes in London to illustrate the way they are manifested in cities and discuss the impact they bear on theory and practice. The example of London demonstrates that the phenomenon may carry an evasive nature as its volumes may appear insignificant in overall city reports. Although cities may be deemed capable of absorbing a certain degree of vacant homes within them, the tendency of urban second homes to concentrate in selected neighborhoods is where their threat lies. As these local settings gain world popularity and become terrains for global temporaldwelling, they may gradually produce isolated islands and sharpen segregational tendencies of contemporary cities. The rise of second homes in cities signals a series of profound shifts in global dwelling patterns. They thus highlight that the terms "home" and "migration" fall short in capturing contemporary conditions. Similarly, the difficulty of tracking and analyzing the phenomenon is bound by the absence of methodologies for approaching temporality and seasonality dimensions in dwelling patterns. The transnational nature of second homes adds to the challenge and calls for innovative and effective methods for tracking dwelling across time and space. A model based on the probability of occupation may be the key to readdressing and measuring temporal-occupancy. Additionally, as the case of London demonstrates, cities can no longer be understood inde14
pendently of each other, and should be viewed through the networks they form and the new spatial practices these networks introduce. A global database and policy expertise in this area may thus be very useful in addressing this important phenomenon. It may also shed light on the role the same agents may carry simultaneously in different urban contexts and in several housing market scenes, and assist in addressing the challenge as part of the struggle to maintain sustainable cities in face of disappearing world borders. REFERENCES 2006. Evaluation of the use of reduced council tax discount from second homes by rural authorities 2004/05. Commission for Rural Communities, London. BAR-SINAI, K. L. 2007. Multiple dwellings and the city: Temporal-tenancy and urban second homes in Jerusalem. MSc Dissertation. The London School of Economics and Political Science. CASADO-DIAZ, M. A. 1999. Socio-demographic impacts of residential tourism: a case study of Torrevieja, Spain. International Journal of Tourism Research 1:223-237. COPPOCK, J. T. 1977. Second homes: Curse or blessing? Pergamon, Oxford. CRAINE, T. & MASON, A. 2006. Who buys new market homes in London? London Development Research Ltd. for The Greater Alone Authority. GALLENT, N., MACE, A. & TEWDWR-JONES, M. 2005. Second homes: European perspectives and UK policies. Ashgate, Aldershot. GALLENT, N. & TEWDWR-JONES, M. 2007. Decent homes for all: Planning’s evolving role in housing provision. Routledge, London. HALL, C. M. & MĂœLLER, D. K. 2004. Tourism, mobility, and second homes: Between elite landscape and common ground. Channel View Publications, Clevedon, UK ; Buffalo. HAPPLE, S. K. & HOGAN, T. D. 2002. Counting snowbirds: The importance of and problems with estimating seasonal population. Population Research and Policy Review 21:227-240. LEES, L. 2003. Super-gentrification: The case of Brooklyn Heights, New York City Urban Studies 40:2487-2509. MASSEY, D. & JESS, P. (eds.) 1995. A place in the world?
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Places, cultures and globalization: 4 the shape of the world Oxford university press, Oxford. MCINTYRE, N., WILLIAMS, D. & MCHUGH, K. 2006. Multiple dwelling and tourism: Negotiating place, home, and identity. CABI Pub., Wallingford ; Cambridge, Mass. OSWALT, P. 2005. Shrinking cities. Ostfildern-Ruit : Hatje Cantz ; London : Art Books International. PARIS, C. 2006. Multiple ‘homes’, dwelling & hyper mobility & emergent transnational second home ownership. Housing in an expanding Europe: Theory, Policy, Participation and Implementation. Ljubljana, Slovenia.
SASSEN, S. 1991. The global city: New York, London, Tokyo. Princeton University Press, Princeton, N.J. ; Oxford. SOJA, E. W. 2000 Postmetropolis : Critical studies of cities and regions, Oxford, Malden, MA, Blackwell Publishers. WILLIAMS, A. M. & HALL, C. M. 2000. Tourism and migration: New relationships between production and consumption. Kluwer Academic, Dordrecht ; London. www.statistics.gov.uk/census2001/ www.guestinvest.com www.london.gov.uk
Author’s Address: Karen Lee Bar-Sinai SAYA Architecture & Consultancy POB 7918, Jerusalem karenlee@sayarch.com 15
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REES, P. W. 1995. City of London Census 1999: An analysis of data relating to residents based on the Census of Population 1991. City of London, Department of Planning.