Cornwall's holiday let industry struggles amid tax break losses

In Cornwall, estate agents report an increase in short-term holiday lets being listed for sale or rent, attributed to the impending end of tax breaks for the industry, as announced in the March budget by the previous Conservative government. This shift is expected to lead to a significant number of owners exiting the holiday let market, with many transitioning to short-hold tenancies or selling their properties. However, the properties being listed are primarily high-end, making them unaffordable for average renters. Local tourism officials express concern over the potential negative impact on the visitor economy due to the loss of short-term accommodations. They emphasize that self-catering properties are crucial for attracting visitors, especially during off-peak seasons, which in turn supports local businesses such as pubs and restaurants. The chairman of Visit Cornwall highlights the importance of maintaining a diverse range of accommodations to ensure the region remains appealing to tourists. The changes in regulation aim to prevent communities from being depleted by vacant properties, but the resulting market dynamics may exacerbate the housing crisis for local residents. The tourism sector has benefited from substantial taxpayer support over the past decade, raising questions about the sustainability of the holiday letting model in its current form. As the market adjusts, the future of short-term rentals in Cornwall remains uncertain, with potential implications for both the housing market and the local economy. The situation calls for a balanced approach to regulation that considers the needs of residents and the tourism industry alike.