Measures designed to curb second-home ownership and return more holiday lets to residential use have yet to produce stronger housing market activity in Devon and Cornwall, according to LandSale.
The property platform found that sales growth in both counties trailed the national average between 2024 and 2025, despite evidence that higher ownership costs have encouraged more holiday let owners to sell.
Residential transactions increased by 4.4% across England during the period. By comparison, sales rose by 3.7% in Cornwall and just 1.5% in Devon.
The findings follow the introduction of powers allowing councils to impose a council tax premium of up to 100% on second homes from April 2025.
SOUTH WEST DOMINATES HOLIDAY LET MARKET
LandSale estimates that 10,334 properties suitable for use as holiday lets are currently listed for sale across England.
More than half of these properties, 51.2%, are in the South West, reflecting the region’s importance to the domestic tourism market.
LandSale’s own listings show a similar pattern, with the South West accounting for 30.2% of holiday let properties marketed through its platform. The East of England and Yorkshire and the Humber each represent 14.3%.
SUPPLY ALONE CANNOT DRIVE RECOVERY
The reforms sought to reduce the financial appeal of owning second homes, encourage properties back onto the residential market and improve availability for local buyers.
However, LandSale says the additional stock has not yet been matched by sufficient buyer demand to generate a significant rise in completed sales.
LOCAL MARKETS TRAIL
Adam Morris (main picture, inset), Founder of LandSale, says: “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.”
