By David Byers
Holiday Let Market Faces Perfect Storm as Tax Changes Drive Surge in Sales
At Black Brick, we are seeing a significant shift in the UK holiday let market, driven by mounting tax pressures and changing buyer behaviour.
Rupert Stephenson, from our team, has observed a notable increase in holiday properties coming to market — particularly larger, high-value estates. “Some holiday homes that have been in the same family for generations are now coming up for sale,” he notes, as owners respond not only to uncertainty around capital gains tax (CGT), but also to changes in holiday let tax relief and landlord relief introduced by the previous government. This trend is particularly pronounced across prime estates, farms, and coastal properties in the Exeter and Salcombe areas of Devon, with values ranging from £4 million to £10 million.
Meanwhile, our Cornwall specialist Anna Sharp highlights the additional pressures facing holiday let investors in the South West. International travel has rebounded strongly since the pandemic, meaning fewer domestic holidaymakers are booking UK breaks — with Cornwall experiencing an average decline in bookings of 37 per cent this year. Combined with elevated mortgage rates, many investors are finding that the numbers simply no longer stack up. In high-profile locations such as Port Isaac, supply far outstrips demand, with over 50 properties currently listed and only a fraction under offer.
As the October budget approaches, we anticipate continued market activity from vendors seeking to act ahead of any further tax changes. For buyers, this represents a rare opportunity to acquire premium holiday properties — including generational family estates — in some of England’s most sought-after locations.
For expert buying agent advice on navigating the current holiday let landscape, contact Black Brick today.
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