IT is a dream for many to own a bolthole by the sea.

But the popularity of second homes in one picturesque village on the Fife coast is proving problematic as locals express concern over a housing shortage and young people being priced out of their own area.

Elie, with its golden sands, is a magnet for holidaymakers, but research shows about 45% of homes in the village – and in neighbouring Earlsferry – are not used as a main residence.

Residents say they are worried about the impact on the community and some are even ruminating on following in the footsteps of St Ives, Cornwall, which has banned out-oftowners from buying new-builds as second homes.

Scotland-wide, the number of second homes has declined since the introduction of an additional 3% tax levy on buying second properties and buy-to-let landlords in 2016.

However, the East Neuk remains a draw for second-home ownership.

“Elie was such a lovely village. We always had holiday people but we had a much larger permanent population,” said local resident Carol Birrell. “We had a really good social life and community spirit. Now the residents are swamped.”

Jim Robertson, chairman of Elie and Earlsferry Community Council, added: “Young families can’t afford to stay locally and so you get the ageing population and the loss of the younger population, which has a knock-on effect on the school that has a below borderline number of pupils. We have already lost two banks and a post office.”

The Scottish Greens believe there is a need to curb a tax loophole that allows owners of second homes to avoid paying council tax by listing their property as a business.

Mark Ruskell, Green MSP for Mid Scotland and Fife, said: “Second homes are becoming a blight in East Neuk, denying local people access to affordable, good quality housing and inflating house prices beyond the reach of many families.

“Our beautiful villages are becoming ghost towns, with no one to provide the local services communities rely on. If we continue this trend our villages will lose the very heart and soul that made them such popular holiday destinations in the first place.”