Estate agents in some of the UK’s most popular tourist destinations are reporting a sharp decline in demand for second homes, driven by recent council tax changes. The new rules, introduced under the Levelling Up and Regeneration Act, empower local authorities to charge higher premiums on second homes, holiday lets, and short-term rentals like Airbnbs.
Local agents see changing property landscape
In Newquay, Cornwall – a town famous for its stunning coastline and bustling tourist trade – estate agents are witnessing noticeable shifts in the market. Bradley Start of Start & Co estate agents told the BBC: “They’ve received these demands for twice as much council tax and that’s prompted a lot of people to think about selling.”
While some might see this as an opportunity for first-time buyers, Start argues the reality is far more complex. “A two bedroom apartment on a cliffside with a sea view but no amenities is not going to suit a first time buyer for price or what it can offer,” he explained.
Cornwall, known for its picturesque landscapes and strong tourism sector, is among approximately 200 local authorities implementing higher council taxes on second homes. According to Cornwall Council, the new measures are expected to generate an additional £24 million in revenue.
Second home numbers in Cornwall reveal the scale of impact
The recent policy change is particularly significant for Cornwall, where the second home market has traditionally been robust. As of December, government figures indicate there were 14,123 second homes in Cornwall – roughly one in every 19 properties.
The Ministry of Housing, Communities and Local Government defines second homes as properties that are not occupied as primary residences but remain fully furnished. This includes holiday lets, Airbnbs, and investment properties left unoccupied.
Despite the council’s optimism about increased revenue, questions remain about the long-term effects on the local property market. Will these changes merely shift the burden, or could they genuinely open doors for those struggling to buy their first home?
Cautiously optimistic
Letting agents are cautiously optimistic, acknowledging that higher taxes on second homes could boost the rental market by prompting property owners to consider longer-term lets instead of short-term holiday lets. However, concerns persist that the changes may not result in genuine affordability for locals.
With property prices in scenic areas like Cornwall remaining high, many letting agents believe that the government needs to address deeper, underlying issues of affordability and housing supply.
