Reforms designed to curb holiday lets hasn’t led to wider resi growth

The introduction of council tax premiums on second homes, alongside wider measures designed to curb the growth of holiday lets, has yet to deliver a stronger housing market in Devon and Cornwall, where sales activity continues to lag behind the South West and England as a whole, according to LandSale’s new research.

LandSale analysed residential transaction volumes across England, the South West, Devon and Cornwall to assess how housing market performance has evolved following changes to the rules surrounding second homes and holiday lets, as well as examining the distribution of holiday let properties currently listed for sale across England.

Of an estimated 10,334 properties currently listed for sale across England that are suitable for use as holiday lets, more than half (51.2%) are located in the South West

LandSale’s own data shows a similar pattern, with 30.2% of all holiday let listings currently marketed through its platform located in the South West, followed by the East of England and Yorkshire & the Humber, each accounting for 14.3% of listings.

Wider transaction growth lags

Yet the wider housing market has yet to see a corresponding uplift, with transaction growth rising only 3.7% in Cornwall and 1.5% in Devon between 2024 and 2025, compared to a 4.4% increase in residential transaction volumes in England as a whole.

Founder of LandSale, Adam Morris, said: “Measures designed to discourage second home ownership were introduced with the aim of improving housing availability and creating healthier, more balanced local property markets in popular tourist destinations such as Devon and Cornwall. 

“There’s evidence that higher council tax charges have encouraged more holiday let owners to bring properties to market, but increasing supply is only one part of the equation. A healthy housing market also relies on strong buyer demand and consistent transaction levels.

“More than a year on from the introduction of these changes, the data suggests the policy has yet to translate into stronger market performance. Instead, both Devon and Cornwall continue to trail the wider market when it comes to sales activity.

“That doesn’t necessarily mean the policy has failed, because encouraging more homes back into residential use was always a long-term objective. However, it does suggest that increasing supply alone isn’t enough to transform local housing markets, particularly where affordability, borrowing costs and buyer confidence continue to influence purchasing decisions.”