Second homeowners could be forced to sell-up over next two years as falling prices take toll on property market

One in four people who own a second home in England will sell it over the next two years, research has claimed.

The report claims falling house prices and the huge cost of running a second home will persuade many people to put up the 'For Sale' sign.

At this level, it means around 60,000 homes, typically located in pretty coastal villages, will come flooding onto the market.

The report, from the consultancy Capital Economics, is the latest warning about Britain's fragile property market.

While the super-rich will have no need to sell up, it predicts many second homeowners will struggle with the huge costs of a second home.

Owners must pay all the normal bills      from council tax to electricity despite using the home only for weekends and the occasional holiday.

Many will decide that this 'non-essential' spend must go, it predicts.

The report's author, Seema Shah, said: 'Second home owners will now be forced to compare the costs of their second property with the benefits - and then factor in prospective capital losses rather than gains.'

The decision will be also be fuelled by the fact that their second home is no longer 'making money' from rising property prices.

Capital Economics, which correctly predicted this year's falling property market, said the total number of homes coming onto the market could be even higher.

She expects 25 per cent of the 240,000 second homes in England will be sold - but even more people will try and sell.

Miss Shah said: 'Our estimate for a 25 per cent fall in second home ownership refers only to the properties which achieve a sale.

'In fact, in a similar fashion to the early 1990s, against a backdrop of prospective capital losses, it is likely that only a proportion of second homes on the market will attract a buyer.'

She thinks 57,600 will be sold, but even more will be put on the market but fail to sell.

The biggest losers will be people in the South West where second homes can represent more than 50 per cent of some coastal villages

She said they are less likely to attract buyers who want to live in them permanently, which means they face a bigger struggle to sell, she said.

London and the South East will be less affected because many second homes are often used for work purposes.

One of the most popular locations for second homes is in the City and central London, where many people own a flat while their family live in the countryside.

Devon, Cornwall, Norfolk and Berwick-upon-Tweed are among the most popular hotspots for wealthy second homeowners.

They are regularly accused of destroying local communities, with their homes lying empty and dark for much of the year.

Local people say they are priced out of the area by second homebuyers with big budgets to buy the nicest homes.

As a result, the predicted flood of second homes coming onto the market will be cheered by many locals who loathe the influx of second homeowners.

But, for many locals, it will be a mixed blessing as they will also lose jobs, such as gardening, cleaning and cooking for their wealthy visitors.