T The ban on second homes in St Ives has been reversed as construction companies move to nearby cities and caused some housing prices to rise for locals, a study by the London School of Economics (LSE) has found.
Residents of the Cornish coastal town chose to ban the sale of new homes as second homes in 2016 after concerns that they were priced out of the market by wealthy summer residents from London and the South East.
At the time of the referendum, the average property price was around £ 323,000, according to real estate agents Hamptons at just under 1[ads1]4 times the median annual earnings in Cornwall.
The "Principal Policy" was designed to allow locals to buy new properties without competition from other home buyers, while relying on tourism's dependence on the local economy.
However, Professor Christian Hilber believes that the ban could increase the "ghost town effect" as it inadvertently reduced the number of available homes because of construction companies that found new work in the surrounding areas.
Professor of Human Geography argued that competition between summer residents and local residents intensified as demand shifted from new construction to existing homes after the new regulations were introduced.