The Intermediary – August 2026 - Flipbook - Page 28
BUY-TO-LET
Opinion
Are reforms
really fixing
the market?
T
here has been no
shortage of political
aention paid to second
homes and holiday lets
in recent years.
In popular tourist
destinations, particularly across the
South West, concerns around housing
availability have become increasingly
difficult to ignore. The argument is
a familiar one: too many homes are
being used as second residences or
short-term holiday accommodation,
reducing the number available to local
buyers and, in turn, puing additional
pressure on affordability.
The response has been a series of
measures designed to make secondhome ownership less aractive,
including the ability for councils
to charge a council tax premium of
up to 100% on second homes from
April 2025.
On the face of it, the logic is fairly
straightforward. Increase the cost of
owning a second home, encourage
more owners to sell, increase the
supply of housing, and create a
healthier market for local residents.
But property markets rarely work
in such a straightforward way. Our
latest research suggests there are signs
that more holiday let and second home
owners are indeed considering an exit.
Across England, we estimate there are
currently more than 10,000 properties
listed for sale that are suitable for use
as holiday lets, with more than half of
that stock located in the South West.
However, what is far less clear
is whether this additional supply
is actually translating into greater
housing market activity.
Between 2024 and 2025, residential
transaction volumes across England
increased by 4.4%. In Cornwall, the
increase was 3.7%, while in Devon it
was just 1.5%.
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The Intermediary | August 2026
That highlights an important
distinction. Encouraging property
owners to sell is one thing. Ensuring
there is a willing and financially
capable buyer on the other side of that
transaction is another entirely.
For brokers, this will hardly come as
a surprise.
The mortgage market provides
perhaps the clearest view of the
pressures still facing buyers.
Affordability remains stretched in
many parts of the country, borrowing
costs are still a major consideration,
and prospective purchasers must
satisfy lending criteria that can
materially restrict what they are able
to borrow.
This is particularly relevant in areas
such as Devon and Cornwall, where
local earnings can sit some distance
below the values aached to desirable
coastal and rural homes.
A property coming back onto the
open market does not automatically
become an affordable home for a local
first-time buyer or family.
In many cases, the stock being
released remains relatively expensive,
and some properties may also appeal
to investors, retirees, second home
purchasers or buyers relocating from
elsewhere in the country.
That means additional supply
can help, but it cannot solve the
affordability issue in isolation. There
is also a danger in judging the success
or failure of these reforms too quickly.
Housing markets move slowly
Owners do not necessarily sell
immediately because their Council
Tax bill rises, while properties that
do come to market can take months
to complete. It is therefore entirely
possible that the impact of these
measures will become clearer over a
longer period.
ADAM MORRIS
is founder of LandSale
More holiday
let and second home
owners are indeed
considering an exit”
Even so, the early evidence suggests
policymakers should be careful
not to view supply as the only lever
that maers.
If the objective is to improve access
to housing for local people, then buyer
affordability, mortgage availability,
wage growth and confidence all need
to form part of the equation.
This is where the role of the broker
remains so important. Brokers see
first-hand the difference between
someone wanting to buy and someone
actually being in a position to do so.
They understand how changes to
rates, affordability calculations and
deposit requirements can determine
whether additional housing supply
results in a completed transaction,
or whether it simply creates a
longer list of properties siing on
the market.
The second home reforms may
ultimately have a meaningful impact,
and bringing more properties back
into residential circulation should not
be dismissed as a negative step.
However, if we really want to judge
whether these measures are working,
the number of homes coming onto the
market cannot be the only metric.
The real test is whether more people
are able to buy them. ●
