The UK holiday hotspot where homeowners are rushing to sell amid council tax bill fears. (Image: Getty)
Second homeowners in some of most popular holiday spots are rushing to sell properties amid fears of looming tax hikes, new data has shown.
According to latest house price index, Truro in 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 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 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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Truro in Cornwall saw a 47 percent increase in homes for sale last month. (Image: Getty)
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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Fewer holiday homes mean fewer visitors, and that’s going to hit local businesses hard. (Image: Getty)
Peter Collins, managing director of Cornish Cottages, told The Telegraph: ” 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 as an investment, but they haven’t made the returns they expected, so now they’re selling up.”