Homeowners are either selling their properties or choosing not to rent them out. (Image: Getty)
The coastal regions of Devon have been hit hard by the impact of changes in holiday home ownership and rental regulations, those living there have claimed.
Local businesses are feeling the strain as fewer visit the area and with stricter rules on lets and potential changes to , homeowners are either selling their or choosing not to rent them out, resulting in a significant reduction in bookings.
Writing for , Mike Warburton highlighted the growing crisis in area, where an alarming number of properties are up for sale.
Warburton, who spent a week in the region, was struck by the dramatic changes affecting the once-thriving holiday destination.
His observations point to a worrying trend: property owners are pulling out, creating a ripple effect on local businesses and the broader economy.
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Local businesses are feeling the strain as fewer visitors flock to the area. (Image: Getty)
He said: “Second home ownership in Devon has spiraled out of control. It’s driving people away from the area, and pushing up house prices, making it impossible for locals to live here.”
A conversation with a fish and chip shop owner, who Warburton refers to as the “local economic pundit”, showed the deeper impact of these property sales.
The owner explained that with fewer holidaymakers visiting, businesses have suffered.
And, as property owners look to sell rather than rent their homes out to tourists, bookings have dried up, leaving local shops and restaurants struggling to make ends meet.
One local resident said: “We’re seeing families and younger people moving away. They simply can’t afford to stay in the area due to the second home market.”
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Some local shops and restaurants struggling to make ends meet. (Image: Getty)
Warburton added that the exodus of landlords may be driven by new government policies, including the prospect of higher capital gains tax, the doubling of , and the abolition of the Furnished Holiday Lettings (FHL) rules.
These factors, combined with the abolition of Section 21, are creating uncertainty and forcing property owners to rethink their investments.
While some applaud the move to make more homes available for permanent residents, Warburton said the changes are having a negative economic impact on dependent on tourism.
The abolition of the FHL rules, introduced in 1984 to stimulate the economy in seaside towns, has been especially detrimental.
These rules allowed property owners to benefit from tax relief if they let their homes out for a minimum of 70 days per year.
However, with pushing forward new legislation that eliminates this relief, the knock-on effect could be disastrous for towns like South Hams, which rely heavily on tourism revenue.
Speaking about the issue, Devon County Council spokesperson said: “The impact on our local community is severe. We need urgent measures to ensure local people can continue to live and work in Devon, instead of being priced out.”