An estate agent operating in one of the UK’s most popular tourist hotspots has reported a dramatic decline in demand for second homes. Bradley Start, who works for Start & Co estate agents in Newquay, Cornwall, has shared his observations with the BBC, noting that the once booming market for second homes has virtually disappeared.
According to Start, while interest from potential buyers has significantly dropped, there has been a noticeable rise in the number of second homeowners looking to sell their properties. This shift in the market, he explains, is largely due to the recent increase in council tax for second homes, which has caused many owners to rethink their investments.
Start elaborated on the situation, explaining that some owners have received council tax demands that are twice as high as before. This sudden financial burden has prompted many to reassess the viability of maintaining a second property, leading them to consider putting their homes on the market.
The impact of this change is being felt across Cornwall, a region that has traditionally attracted second-home buyers looking to invest in picturesque coastal properties. Start highlighted that the rise in council tax has had a profound effect on property owners, with many deciding that the financial strain is simply too much to bear.
As a result, the once lucrative market for second homes in the area is showing signs of significant downturn. This trend also raises concerns for other regions with similar high council tax demands for second properties, potentially indicating a wider shift in the real estate landscape.
For estate agents like Start & Co, this change presents a challenging new reality. While the decline in demand for second homes may lead to fewer sales, it also opens up opportunities for those who are looking to invest in homes from owners eager to sell.
Start’s comments offer valuable insight into how local tax policies are having a far-reaching effect on property markets, influencing both buyers and sellers in ways that may not have been anticipated. It remains to be seen how long this trend will continue and whether other regions will experience similar challenges.
Bradley Start, an estate agent based in Newquay, Cornwall, has highlighted a significant issue regarding the shifting dynamics of the second home market. However, he also cautions that the recent changes are not necessarily beneficial for first-time buyers. He points out that the types of properties now being sold – such as a two-bedroom apartment on a cliffside with a sea view but no amenities – are unlikely to appeal to first-time buyers due to both the price and the limited functionality of the property.
The changes in the local tax laws have created a situation where second homes are being increasingly taxed, and Cornwall is one of the 200 local authorities that is implementing these new rules. As of this month, the council is levying higher council tax on second homes, holiday lets, and in some cases, properties listed on Airbnb and other short-term letting platforms. These new tax rules are expected to generate significant revenue for the area. Cornwall Council anticipates an additional £24 million in revenue, thanks to the Levelling Up and Regeneration Act, which allows local authorities to impose a premium on second homes.
As of December, government figures showed that there were 14,123 second homes in Cornwall, making up roughly one in every 19 dwellings in the area. The Ministry of Housing, Communities and Local Government defines second homes as properties that are not occupied as a primary residence but are fully furnished. These can include properties used as holiday lets or Airbnbs, as well as those purchased purely as investments and left vacant for much of the year.
While the new tax measures aim to provide financial benefits for the local government, they also raise concerns about the impact on the property market, particularly in regions like Cornwall that are heavily reliant on second home ownership. With the rising council tax on second homes, the question remains whether these changes will help create more affordable housing for locals or whether it will simply lead to a shift in the market, with more properties being sold or left vacant.
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