Demand for second homes has 'fallen off a cliff'

There has been a "significant decline" in demand for second homes in Cornwall as people respond to higher costs, an estate agent has said.

Bradley Start, from Start & Co in Newquay, said interest in second properties in the area had "fallen off a cliff" with more inquiries now coming from owners who wanted to sell.

From this month Cornwall Council is implementing new powers the government has granted local authorities to charge double council tax on second homes, with the aim of freeing up more housing for local people.

However, those in the industry have warned many of the properties would be too expensive and unsuitable for local buyers.

Proposals to charge a 100% council tax premium on second homes were backed by Cornwall councillors in January 2023.

The authority predicted the policy would raise nearly £24m in additional revenue this financial year.

Bradley Start, from Start & Co estate agents in Newquay, said interest in buying a second home had "fallen off a cliff" with more enquiries from owners wanting to sell.

Mr Start said: "They've received these demands for twice as much council tax and that's prompted a lot of people to think about selling."

New measures increasing the cost of using a second home as a furnished holiday let have also come into effect this month.

However, Mr Start said he feared former holiday homes would not be attractive to people trying to get on to the housing ladder.

"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 said.

According to figures from the Ministry of Housing, Communities, and Local Government there are more than 14,000 second homes in Cornwall.

There are around 21,000 households on Cornwall Council's housing register waiting for a home.

Cath Hayes, from campaign group First Not Second Homes, admitted it would have to wait to see what effect the changes would have.

"I don't think there's a direct connection between doubling council tax and making homes more affordable," she said. "It's not necessarily going to bring first home ownership back directly.

"But it is a way of creating some cash for the cash-strapped council to apply some kind of intervention for those experiencing the housing crisis," she explained.

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