Holiday let reforms and council tax premiums on second homes have yet to generate stronger housing market performance in Devon and Cornwall, according to new research from property marketplace LandSale.
LandSale analysed residential transaction volumes across England, the South West, Devon and Cornwall to assess how market activity has changed since reforms to second home and holiday let rules came into force. The research also examined the distribution of holiday let properties currently listed for sale across England.
There are an estimated 10,334 properties across England currently listed for sale that are suitable as holiday lets. More than half, 51.2%, are in the South West, underlining the region's position as England's largest holiday let market. LandSale's own platform data reinforces this, with 30.2% of its holiday let listings located in the South West. The East of England and Yorkshire & the Humber rank joint second, each accounting for 14.3% of listings.
Cornwall and Devon are the principal drivers of the South West's dominance, reflecting their status as two of the UK's most popular tourist destinations. The rapid expansion of holiday lets and second homes across both counties has, however, generated sustained controversy. Local communities have argued that the growth of short-term rental properties has reduced housing availability for residents, inflated prices and left large numbers of homes empty for extended periods.
The government responded by extending local authorities' powers to discourage second home ownership. From April 2025, councils gained the ability to charge a council tax premium of up to 100% on second homes. The policy was designed to reduce the financial attraction of holiday lets, bring more properties back into residential use and improve housing availability for local buyers.
Higher running costs do appear to have prompted more holiday let owners to sell. Sales activity in the two counties has not, however, kept pace with the rest of England. Residential transaction volumes rose 4.4% across England between 2024 and 2025.
Cornwall recorded growth of just 3.7% over the same period, while Devon managed only 1.5%, leaving both markets trailing the national average despite the increase in homes coming to market.
"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," said Adam Morris, founder of LandSale.
"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."
