Demand for second homes falls: what does it mean for local buyers and sellers?
| Council Tax hikes on second homes are triggering a surge in holiday property sales | In popular holiday destinations the number of properties being listed for sale has increased over 40% | This shift in property ownership has the potential to impact entire communities |
From country cottages to seaside retreats, the second home market is facing challenges. From Tenby to Truro, owners of holiday homes and short-term rental properties are selling up in response to rising costs and policy changes.
A shift in Council Tax rules has been a major trigger, with some local authorities charging up to an extra 100% on furnished homes not used as a sole or main residence from April 2025.
Greater choice, lower price
In popular holiday destinations, such as Bournemouth and Torquay, the number of properties being listed for sale has increased by more than 40%, according to research1.
More properties on the market means more choice for buyers. Holiday homes and lets, however, are not always a good match with full-time living. For example, there might be restricted parking, limited outdoor space or a lack of nearby local services, such as schools.
A surge in properties for sale can also impact market dynamics. This can be good news for buyers, but bad news for sellers.
Sell and buy with confidence
This shift in property ownership has the potential to impact entire communities not just buyers and sellers. Local economies can suffer if there’s a drop in tourists, while community services, such as GP surgeries, can come under greater pressure if there’s a rise in permanent residents.
Whether you are buying or selling, there’s a lot to consider – especially when it comes to securing or redeeming a mortgage. We can help you navigate the different financing options and minimise potential risks.
1Zoopla, 2025
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.