‘Suspicious' second homes flood property market in holiday let hotspots
Second home owners are raising suspicion by exploiting a loophole to dodge council tax premiums.
Local authorities have been able to charge a 100pc premium on second homes since April 1, under new powers introduced under the 2023 Levelling Up and Regeneration Act.
But experts said second home owners were 'raising eyebrows' by exploiting a legal loophole around it.
By listing their holiday home for sale, owners can receive a 12-month exemption from the tax. The tactic is fully legal as long as properties are publicly marketed and listed at a price in line with the local area.
North Cornwall MP, Ben Maguire, said the litany of for-sale signs in the coastal town of Padstow was 'suspicious'.
He said: 'Houses here sell like hot cakes. It's slightly suspicious, seeing that. They've been on the market a long time.'
Only around a fifth of second homes which have come on to the market this year are under offer, according to Hamptons estate agency.
While property sales are a slow-moving process across the board, Harry Goodliffe, of Hampshire-based firm, HTG Mortgages, accused some second home owners of 'playing the game'.
He said: 'We've noticed a few properties pop up at inflated prices or with zero real marketing effort. It's a clear sign they're just buying 12 months of relief, not seriously exiting the market.
'This loophole might be legal, but it's raising eyebrows. List the house, dodge the tax, but don't actually sell.'
The average second home owner has seen their tax bill rise 77pc to £3,672 in 2025-26 as a result of the new premium, according to Telegraph analysis. Those owning the most expensive properties in some areas face a bill in excess of £10,000.
A growing number, however, are believed to be sidestepping the costs by putting their home for sale with little intention of selling.
Several councils shared fears over administration challenges and suggested the relief 'could be open to abuse and create opportunities for avoidance' when consulted by the Government in 2023.
Jonathan Moser, of property management firm, Mo'Living, said: 'It's early days but we're already seeing this tactic emerge.'
Holiday home owners in England making use of the listing trick are following in the footsteps of those in Wales who have faced tripled council tax bills since last April.
The exemption, which is enshrined in the Local Government Finance Act, can last for a maximum of one year, but councils have discretionary powers to extend the relief if a sale is nearly over the line. There is, however, no obligation to sell.
An owner can only make use of the 12-month exemption once during the course of their ownership. As well as being listed for sale, the home can be marketed for let and still earn 100pc relief from the premium.
Government guidance states: 'Owners may need to provide evidence to their council to benefit from this exception. To qualify, a property must be on the market for sale or let at a reasonable price.
'In cases where the council considers the sale or rental price to be inflated, the council can request evidence to support the asking price.'
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
12 minutes ago
- Yahoo
New Gold Star on Hamilton's west side is open and has an expanded menu
Jun. 6—A relocated Hamilton west side Gold Star restaurant is now open and is much larger than its former location on Main Street. It is in a plaza on North Brookwood Avenue that will see explosive growth in the next few years. A Valvoline is being built nearby, next to Wendy's and a newly announce Kroger Marketplace will be close, too. The Gold Star is corporate-owned as it replaces a building owned by now-former franchisee Carlo Salem, who is retiring. Gold Star Chili CEO Roger David said the work to select a location and build it took at least five years. However, it's been his priority for just about his entire 10-year tenure as CEO. Plans for the project were approved by Hamilton City Council in 2023. "It's very, very rewarding to be here," he said. David said patrons will notice a few things walking through the door, one being "an elevated level of hospitality." Another is an expanded menu, which in addition to the classic conies and ways, the restaurant will serve single and double burgers, deckers, fried chicken sandwiches, milkshakes and garlic parmesan fries, which David says "are the best in the city." The westside Hamilton store is a little bigger than the newer prototype restaurants being built over the past few years. The new Gold Star store replaced an old Pizza Hut, but David said they used that pizza restaurant's existing footprint, which resulted in a bigger space. "It has a tremendous dining room in there, we can accommodate a large group," he said. Gold Star plans to continue its partnership with community groups, including the schools, churches "and any organization that congregates." "We'll be a part of whatever their needs may be," he said. But helping with food banks and pantries is where the 60-year-old restaurant chain "really, really leans in heavily." "Understanding community needs is kind of where it starts, but with hunger, that's typically where we lean in a little heavier," he said. While the North Brookwood Gold Star has been open for a couple of weeks, the Cincinnati-based chain will formally celebrate its opening the weekend of Aug. 9 and 10, where guests can get free cheese coneys with the purchase of a drink, and chances to win free burgers for a year. The restaurant is open daily from 10 a.m. to 10 p.m. at 108 N. Brookwood Ave.
Yahoo
12 minutes ago
- Yahoo
The case a federal judge called 'Kafkaesque'
Welcome back, Deadline: Legal Newsletter readers. Have you ever had a word stuck in your head? I can't seem to shake this one from a court decision this week: entombed. The haunting term came from the chief federal trial judge in Washington, D.C., James Boasberg. He's presiding over a lawsuit from scores of Venezuelan immigrants held in a Salvadoran prison known for human rights abuses, called the Center for Terrorism Confinement, or CECOT for short. The judge wrote a 69-page opinion, published Wednesday, explaining why the Trump administration must work to let the immigrants challenge their rushed renditions to that prison back in March. Boasberg opened with a nod to Franz Kafka's 'The Trial.' The Obama appointee compared the ordeal to that of Kafka's protagonist, Josef K., whose absurd legal saga is a helpful shorthand to draw attention to farcical affairs. While the term Kafkaesque can seem dramatic, it applies here. After all, U.S. agents hustled the men out of the country without due process, backed by the purported authority of an 18th-century wartime law, the Alien Enemies Act, whose factual and legal propriety has been called into grave doubt not only by judges around the country but by U.S. intelligence agencies. On the latter front, a declassified memo released last month showed that officials had rejected President Donald Trump's basis for citing the act. He had claimed the Venezuelan government controlled the gang to which these men allegedly belonged. But experts in Trump's own government disagreed. So, Trump's use of the law was bogus from the start. On top of that, at a hurried hearing in March, Boasberg had ordered the U.S. to keep custody of the men — an order the government ignored, and that disobedience is the subject of separate contempt litigation that the administration is appealing. But that foundational sham and defiance wasn't the issue in Boasberg's ruling this week. His narrower, modest point was that the men never got due process to challenge their removals under the act. 'Perhaps the President lawfully invoked the Alien Enemies Act. Perhaps, moreover, [government] Defendants are correct that Plaintiffs are gang members,' the judge wrote, adding: 'But — and this is the critical point — there is simply no way to know for sure, as the CECOT Plaintiffs never had any opportunity to challenge the Government's say-so.' Our word-of-the-week then emerged when the jurist observed that 'significant evidence has come to light indicating that many of those currently entombed in CECOT have no connection to the gang and thus languish in a foreign prison on flimsy, even frivolous, accusations.' Entombed in CECOT. Now what? Boasberg said the government must facilitate the plaintiffs' ability to challenge their removals. But he left it to the government to decide how to make that happen. 'Exactly what such facilitation must entail will be determined in future proceedings,' the judge wrote, giving the administration a week to come up with a plan. We'll be eagerly awaiting the official response — or, the latest emergency Supreme Court appeal from a judge's effort to bring the administration into legal compliance. At any rate, it doesn't seem like anyone is going anywhere anytime soon, even if Boasberg's order stays on track, which is not a sure bet. Until then: entombed. Have any questions or comments for me? Please submit them on this form for a chance to be featured in the Deadline: Legal blog and newsletter. This article was originally published on
Axios
14 minutes ago
- Axios
Buc-ee's opens store an hour from New Orleans
Buc-ee's opens its massive travel center Monday in Mississippi just off Interstate 10 in Pass Christian. Why it matters: It's the popular chain's closest location to New Orleans (it's about one hour away) as it works on building its first two stores in Louisiana. The big picture: Buc-ee's is a cult favorite for road trippers. It's known for clean bathrooms, fresh food and beaver-themed merchandise. The Mississippi location has all the classics, the company says, including Texas barbeque, jerky, fudge, kolaches, pastries and snacks. It also has 120 gas pumps and 24 EV charging stations, according to a press release. The store opens at 6am and will be open 24 hours, seven days a week. By the numbers: It's the company's first store in Mississippi and has one of its largest footprints at 74,000 square feet. Its largest store, which it claims is the world's largest convenience station, is in Luling, Texas, at 75,593 square feet. Until now, the closest one to New Orleans was in Alabama near Mobile. Zoom out: Buc-ee's is a Texas-based chain that has been expanding its footprint nationally. Its first Louisiana store is expected to open in Ruston late next year, a company spokesperson tells Axios. A Lafayette store is projected to open in 2027, the spokesperson says. If you go: Expect crowds and traffic on I-10 near the new store. The Pass Christian location is at 8245 Firetower Road, which is accessed via exit 24 (Menge Avenue) on I-10.
