A insurer claims that 70,000 additional homes are used as holiday homes in England and Wales, with seven particular areas seeing one in 10 properties now used as holiday lets.
Schofields claims that around one in every 100 Londoners (1.1%) say they use a second address as a holiday home. Cornwall has the highest number of holiday homes (6,080), while South Hams (Devon) and Gwynedd (North Wales) have the most holiday homes in comparison to normal households in their areas.
Using government data, the insurer says recent government clampdowns, including giving councils powers to raise local tax significantly, means many second homeowners are choosing to sell their holiday homes.
It says this trend is particularly evident in coastal towns and rural villages, where a significant number of properties are being withdrawn from the holiday rental market and listed for sale.
A spokesperson for the company, Phil Schofield, says:“The tax changes are already impacting the holiday property market, many towns and villages are slowly becoming ‘ghost towns’ as owners sell their holiday lets.”
“The holiday letting industry should be supported to help ensure that tourist areas remain vibrant and thriving year-round. However, the recent tax changes, increased costs and a downturn in bookings have led to an oversupply of second homes being put up for sale in some areas.”
It says these locations are particularly affected:
Salcombe, Devon – Salcombe has become a hotspot for holiday homes, leading to inflated property prices that residents struggle to afford. The town experiences long periods of unoccupancy, particularly outside of peak tourist seasons, resulting in a declining year-round population;
Robin Hood’s Bay, North Yorkshire – Known for its picturesque views, Robin Hood’s Bay attracts many second-home buyers. The council is imposing a 100% council tax premium on second homes in the area;
Whitby, North Yorkshire – Whitby’s popularity as a tourist destination has made it a prime location for second homes. However, many homes are left unoccupied for large portions of the year. The local council has taken steps to address the problem by banning new-build second homes and doubling the council tax for existing ones;
Falmouth, Cornwall – With its scenic coastline and strong tourist appeal, Falmouth has seen a sharp rise in second-home ownership. However, to combat unoccupied homes the local authority will double the council tax for second homeowners;
Pembrokeshire, Wales – Pembrokeshire is home to many holiday properties that are vacant for much of the year. Second homeowners are facing up to a 300 per cent increase in council tax, an effort to discourage property hoarding and make more housing available for residents;
Gwynedd, Wales – Gwynedd’s picturesque landscapes have made it a popular destination for second-home owners. However, surrounding villages are facing significant challenges due to second home ownership with many homes vacant for much of the year. Surrounding villages struggle with inflated property prices, seasonal population swings, and a lack of affordable housing, prompting the Gwynedd Council to consider higher taxes and restrictions to address the crisis.
New regulations in England require holiday lets to be rented out for a minimum of 70 days per year and be available for at least 140 days. In Wales, owners must let their properties for at least 182 days a year and make them available to rent for 252 days.
This policy aims to encourage more consistent occupancy and discourage properties from remaining to be a ghost town for most of the year.
This article is taken from Landlord Today