The UK holiday hotspot where homeowners are rushing to sell amid council tax bill fears
The tax rise is set to take effect in April 2025 and will see second homes in this hotspot facing a 100 percent hike in council tax.
Second homeowners in some of the UK’s most popular holiday spots are rushing to sell properties amid fears of looming tax hikes, new data has shown.
According to Zoopla’s latest house price index, Truro in Cornwall saw a 47 percent increase in homes for sale last month compared to the average for the previous six Septembers.
The surge comes as owners brace for possible council tax increases that could double their bills.
The tax rise, set to take effect in April 2025, could see Cornish second homes facing a 100 percent hike in council tax, according to The Telegraph.
The local authority has also proposed asking the Government for new powers to increase the surcharge to 300 percent on second homes.
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Sarah Coles of investment firm Hargreaves Lansdown, said: "Owners are falling over themselves in a rush to shift holiday homes.
"They’re panicking that changes which might come through in the Budget could saddle them with a huge tax bill on their gains, making property investments even less attractive."
There has been a similar rise in listings in other areas, with Torquay in Devon seeing a 44 percent increase in homes for sale.
Local councils are also imposing steep penalties, with Torbay announcing a 200 percent council tax premium on second homes that remain empty for over a year.
While the policy is designed to help locals by making more homes available, it has sparked concerns about the potential impact on tourism, which is vital to the region's economy.
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Peter Collins, managing director of Cornish Cottages, told The Telegraph: "Holiday homeowners are not renewing contracts with us because they’re selling up.
"We’ve lost around 10 percent of our properties. Fewer holiday homes mean fewer visitors, and that’s going to hit local businesses hard."
Cornwall’s tourism industry generates £2billion annually and accounts for 15 percent of the local economy, but experts have warned the sector is struggling.
Experts from the South West Business Council said: "Tourism is now at its lowest level in a decade."
Johnnie Wells, mayor of St Ives, also pointed to other pressures. He said: "Lots of people bought holiday homes here during Covid as an investment, but they haven’t made the returns they expected, so now they’re selling up."
