Slashed prices and desperate sellers: inside Cornwall's flooded second homes market
'It was a dream of mine to go and live by the coast, and when I found this cottage, I thought it was perfect,' she says. Lying at the mouth of a deep estuary, close to the open sea, Fowey is a pretty harbour town with narrow streets winding through the town near the water's edge.
Counted among some of the Cornish coastline's hotspots, it's long been popular with wealthy second home owners; in the past, this kind of property would have been snapped up.
Keen to move nearer to her son in Bath, Pugh-Jones put Napier Cottage on the market last August for £425,000. There were no bites.
Since that time, the asking price has been reduced first to £375,000 and now to £350,000. Still, no one has come forward to buy it. 'During Covid, I could have sold it for £440,000. I'm now on my fourth estate agent and, since August, I've only had three viewings and no offers.'
She lives in the house full time, but it would make a perfect holiday home – and therein lies the problem. 'The trouble is that there are just no buyers,' she adds.
'First, there was the general election, then the Budget in the autumn and now all the increased taxes. It's not an expensive house, but the wind is blowing in the wrong direction for second home owners. When I speak to others in the village, a number are thinking of selling up.'
Cornwall is sometimes called the 'second home capital of England'. In Poluran, a village close to Pugh-Jones's home, more than half of houses are second homes or holiday rentals, according to research last year from the Lanteglos by Fowey parish council.
The attack on second home ownership has come thick and fast in recent months. In last year's Budget, buyers of second homes were hit with a 5pc stamp duty surcharge, up from 3pc. In addition, the furnished holiday lettings tax regime, which gave tax breaks to landlords who rented out fully furnished properties, was removed this year. This means that those properties which once attracted 10pc capital gains tax now meet the standard CGT rate for residential property, currently 24pc.
Finally, and perhaps most punitive, Cornwall council (like others) now makes second home owners pay double council tax, a move that was also introduced in April. (There is a 12-month exemption for those actively marketed for sale or let, which some experts have suggested is a loophole that homeowners are using to avoid the tax rise.)
Justin Knight is a senior valuer at The Property Shop, the estate agency in Fowey that is marketing Napier Cottage. It has two other offices in mid-Cornwall: Bodmin and Lostwithiel. While those two are operating in a normal market – that is, neither location is dominated by holiday homes – it is in Fowey where properties are not selling.
The same is true in two other holiday home favourites: St Ives and Carbis Bay, says Vicky Jones, of estate agent Keller Williams. She describes a 'marked increase' in the number of second homes and holiday properties coming to the market. Kevin James, of Bradleys estate agents, says supply is up 22pc since May 2024. He believes that Cornwall's property market is entering a new phase as tax reforms 'begin to reshape the second home landscape'.
Many agree. 'Fowey is a pretty sailing town, not a working fishing port which functions throughout the year, and the impact has been noticeable since the measures were announced last year,' says Knight. 'People who paid 'Covid prices', when the rush from towns and cities that saw prices here leap in some cases by up to 20pc, are reluctant or can't afford to sell at today's values. And now that the market is flooded with houses for sale, there's a double knock-on impact.'
Truro-based estate agent Ian Lillicrap of Lillicrap Chilcott keeps a keen eye on second home hotspots both within and beyond his patch, including the Cotswolds. 'The market is flooded in all the obvious areas. It's clear that many who bought properties to rent as holiday homes took out mortgages when rates were low and when they could offset the costs against returns.' Interest rates since then have of course risen, and now they face lower demand and much higher costs. 'They've had a culture shock and a rude awakening.'
This fall in demand has mainly hit the middle of the market; those at the top end can afford to wait it out – and pay the increased council tax. Jonathan Cunliffe, who runs his own agency, says at the top end of the market it's back to normal after the frenzy of the pandemic. 'There aren't many owners who need to sell at any cost. Most will wait until the market recovers, so it's difficult to see a complete collapse in prices.'
James says that while those who relied on tax efficiencies to make ownership viable are selling up, those prepared to weather 'short-term policy headwinds' will continue to invest.
It is properties valued between £250,000 and £700,000 that have seen the highest drop in enquiries, says Philip Norgan of Smart Estate Agent in Penryn. Some clients are adjusting their prices, but others are holding firm 'because they can't afford to go as low as necessary'.
Lillicrap says there was a flurry of properties looking to exchange before the changes came in at the end of March, with a particular keenness from those in 'old money' areas such as Rock in north Cornwall. Some of these owners have had the house in the family since the 1960s and have seen a huge gain in value in the intervening years. A house that was worth tens of thousands might now be several million, attracting a significant tax bill in its wake.
Figures from Lillicrap Chilcott paint a picture of how the market has shifted. Of the last 60-odd properties sold since early April, 66pc have been to local buyers moving within Cornwall. In 2022, that figure was 50pc. Second home buyers have dropped from 25pc in 2022 to just 14pc. 'As I see it, those buying a second home with their head rather than heart will find it a lot less attractive than it was 18 months ago,' says Lillicrap.
For those with the means to buy, vendors are ready to sell. Lillicrap has just taken on a two-bedroom apartment by the marina in Port Pendennis in Falmouth. 'The owner said that only a few weeks ago she would have asked £600,000, but as she's in tune with what's happened across the nation, she's putting it on the market for £499,950,' he says.
'There are some fabulous bargains to be had,' adds Clare Coode, of buying agent Stacks Property Search. 'Canny agents are aware of this, and I have never seen more off-market opportunities than I have this spring.'
At the top end of the market, buyers are enjoying what Josephine Ashby of John Bray Estates calls 'a rare abundance of choice and a selection of property that may not reappear on the market for generations' as owners reduce prices. And people are still buying, such as those who snapped up an off-market clifftop property in Polzeath on the first viewing.
Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Entrepreneur
18 minutes ago
- Entrepreneur
A Program That Helped Build 144,000 Jobs Gets Slashed by Budget Cuts — What Happens Next Is Pivotal for Small Business Support
The agency is facing elimination. But this could be an opportunity. Opinions expressed by Entrepreneur contributors are their own. SCORE, the nonprofit that has supported small businesses for over six decades, recently faced a major setback: the latest tax and spending bill eliminated about 60% of its federal funding — a core part of its budget. For an organization that offers free mentoring to hundreds of thousands of entrepreneurs annually, this looks like a serious blow. But what if this funding cut is not the end of SCORE — but a new beginning? With a vast network of 10,000 volunteer mentors and a proven track record of economic impact — including helping start 58,000 new businesses and creating 144,000 jobs in 2024 alone — SCORE has always been a vital lifeline for small business owners. However, without reliable federal support, SCORE faces a crossroads: continue to rely on uncertain government appropriations or reinvent itself as a self-sustaining business. Related: 3 Solutions That Help Alleviate Everyday Pressures Small Business Owners Face The real impact behind SCORE's numbers According to SCORE, every federal dollar invested generated $45 in economic benefits. This was achieved through four million mentoring hours across 200 chapters, advising over 300,000 entrepreneurs annually. These numbers show that SCORE's work isn't just a feel-good story — it's an economic engine. Yet, despite these impressive results, the realities of federal budget cuts have forced SCORE's leadership to confront a difficult question: How can SCORE continue fulfilling its mission without government backing? Facing tough realities: the bigger budget picture As an advocate and advisor for small businesses in this country, it pains me to see great organizations like this lose their support. SCORE is clearly a valuable agency that has helped countless small businesses in the more than 60 years since its founding in 1964. But I'm also a realist. The reality is that, regardless of what we want, there are limitations to what we can afford. Yes, I'd like free education, free healthcare, clean water, safe highways and strong defense. I also appreciate all the research done by so many government agencies and academic institutions that received federal support. But I, like many business owners, also see a $2 trillion annual deficit and a $36 trillion national debt and don't know how we and our children and grandchildren can sustain that level of liabilities. Some things have to be cut. Some things have to go. And it looks like SCORE, like many other good programs the Federal government funds, is one of those things. Government spending must be prioritized and trimmed where possible. Unfortunately, this means good programs sometimes lose funding — even those with proven results. It's painful for advocates and advisors to see a respected organization like SCORE face these challenges. But the truth is, many federally funded programs will need to find new models to survive. A bold proposal: what if SCORE became a business? SCORE's greatest asset isn't just its volunteers or history — it's its infrastructure, leadership and brand recognition. These assets could enable SCORE to spin off from government support and operate as a private, self-sustaining entity. It already has the foundation — a trusted name in the small business community, a robust volunteer network and experienced leadership. With the right strategy, SCORE could attract investors, lenders or equity partners who see the value in its proven return on investment. And that ROI can be translated into real dollars. Imagine SCORE charging a sliding scale of fees based on a business's ability to pay — allowing startups and small enterprises with limited resources to still receive help, while those who can afford it contribute. Or consider raising funds from corporate sponsors who already invest heavily in small business programs, redirecting those dollars toward SCORE's mission. SCORE could also contract its expertise to consulting firms or financial institutions — creating new revenue streams while expanding its impact. Why change is necessary SCORE's traditional model — volunteer consultants supported by government-paid staff — has its limitations. Volunteers vary in quality and motivation, and government employees don't operate under typical business incentives that reward customer satisfaction and performance. For SCORE to thrive in a post-funding world, it must adopt a model that encourages accountability, quality and sustainability. The opportunity ahead If SCORE were to disappear, would more small businesses fail? Would the economy suffer? Probably not dramatically — other organizations and market forces would fill some gaps. But SCORE has a unique opportunity to redefine itself — not just as a nonprofit supporter of small business but as a business itself, accountable for its outcomes and financially self-sufficient. Like the entrepreneurs it helps, SCORE can pivot, adapt and innovate. Related: How to Secure a Small Business Grant in 5 Easy Steps Final thoughts Brigett Weston, SCORE's CEO, recently said, "Without federal support, this incredibly efficient and effective program is at serious risk of no longer fulfilling its mission." That risk is real. But it's also a chance. SCORE can lead the way in demonstrating how public support programs might evolve to meet today's financial realities — continuing to empower entrepreneurs and build our economy, but on its own terms. This is not just a story about funding cuts; it's about resilience, reinvention and the future of small business support in America. Ready to break through your revenue ceiling? Join us at Level Up, a conference for ambitious business leaders to unlock new growth opportunities.
an hour ago
Georgia Ethics Commission won't investigate source of Republican Burt Jones' $10M loan
ATLANTA -- Georgia's State Ethics Commission on Monday declined to investigate whether Republican Lt. Gov. Burt Jones broke state law when he loaned $10 million to a campaign committee after showing far less cash on an earlier financial disclosure. However, a request for a legal opinion on whether such loans are legal is still pending before the ethics body. Bryan Tyson, a lawyer for Attorney General Chris Carr had made the complaint Thursday. Carr is running against Jones for the 2026 Republican nomination for governor. The GOP primary is next May, followed by the general election in November 2026. Gov. Brian Kemp legally can't run again after two terms. Ethics Commission Director David Emadi on Monday wrote back that the commission was rejecting the complaint and wouldn't investigate because it didn't allege a legal violation. Jones' 2022 financial disclosure showed Jones had a net worth of $12.4 million, but only $700,000 in cash and securities. Carr's campaign questioned how Jones could have come up with $10 million in cash, suggesting Jones had falsely reported either his finances then or the source of the cash now, But Emadi wrote the 2022 report 'does not form a factual and legal basis to investigate an alleged false or incorrect filing regarding a loan made in a campaign disclosure report more than three years later.' Julia Mazzone, a Carr spokesperson, said Carr 'respectfully' disagrees with the decision, calling the source of Jones' case 'mysterious.' Jones spokesperson Kendyl Parker said the complaint was a 'pathetic cry for attention' and called the decision 'the first of many losses for the Carr campaign.' Still pending is the Carr campaign's request for an advisory opinion arguing that Jones was prohibited from making the loan to his leadership committee, a special fundraising vehicle that allows the governor, lieutenant governor and legislative leaders to raise unlimited funds. Tyson argued that under Georgia law, loans can be made only to a candidate committee, not to a freestanding political action committee or a leadership committee. Carr's campaign has been voicing concerns for months that Jones will use his leadership committee and his family wealth from a string of gas stations to outspend them in the primary. Campaign officials cite a 2022 federal judge's ruling
CNET
2 hours ago
- CNET
Act Fast to Secure a Lifetime Subscription to OneAir Elite for Just $50
Taking a vacation or special weekend getaway can really help you recharge, but it can be a challenge for those who are on a budget. Flights and places to stay are most expensive part of travel, and finding the best deal can take a long time. However, there are services that can help you plan these expensive portions of your trip and potentially cut your costs. To save money, why spend hours searching websites for offers? OneAir Elite can help you bag the best deals on flights, hotels and even car rentals, thanks to rates you won't find elsewhere. A lifetime subscription is the best way to save even more money and StackSocial is offering a lifetime membership for just $50 when you use coupon code TRAVEL. Hey, did you know? CNET Deals texts are free, easy and save you money. This members-only travel app provides tons of discounts on flights and hotels just about anywhere. Using AI, OneAir scans and searches hotel and airfare data for destinations all over the world. When a price drops, you'll receive an email and mobile alert right away so you don't miss any deals. OneAir claims members save up to $150 on flights and per night on accommodations. The savings don't stop there. When you book through OneAir, you'll receive up to 10% in OneAir cash rewards that you can use on future OnePlus travel. It's time to start planning for the summer and save, too. Why this deal matters StackSocial claims a lifetime subscription to OneAir Elite would cost about $790, so this deal takes almost 90% off that price. Once you factor in the coupon, you'll save another $50 off the discounted price, bringing the total to just $50. And the savings continue once you subscribe. Although there isn't any information on a lifetime membership directly on OneAir, a yearly Elite membership will cost you $79. If you use this service for just one year, you've already gotten your money's worth. Act fast if you're interested; this deal can expire at any time. Don't forget to apply the coupon code TRAVEL at checkout for the full discount.
