Penalising all second-home owners with a 100% council tax premium risks undermining the very economic ecosystem that supports local jobs, businesses, and services, says Stuart Brereton (pictured), regional managing director of housebuilder Acorn Blue.

Although he understands the challenges of housing affordability in Cornwall, Brereton points out that many second home owners make a vital contribution to the Cornish economy by investing in renovations, employing local tradespeople, providing holiday accommodation that boosts tourism and the leisure industry.

“These homes,” he told Business Cornwall, “are not sitting idle: they support local cafés, trades, shops, and attractions across the region.”

“To paint all second-home ownership as harmful overlooks the role these residents play in keeping Cornwall’s economy alive.

This policy sends the wrong message that visitors, part-time residents, and vital seasonal income are unwelcome.”

“This policy sends the wrong message that visitors, part-time residents, and vital seasonal income are unwelcome.”

And, as has happened in Pembrokeshire, there are already signs of the damage the tax premium is doing. Local estate agents have been reporting a big rise in the number of second homes being listed for sale, but with few buyers, vendors are having to make significant reductions. At the same time, holiday rental firms are complaining about falling numbers of properties and that, many fear, will mean fewer visitors.

A more nuanced approach

Brereton says that, although he supports policies that tackle the housing shortages, he favours a more nuanced approach. He wants the tax to be targeted at vacant or underutilised properties rather than ones that are contributing to the local economy, such as second homes that are regularly occupied or holiday lets.

“We must strike a balance. Encouraging year-round use, regulating short-term lets fairly, and investing in new housing stock are smarter long-term solutions than blunt tax increases.”

And he is encouraging local leaders to come together with developers, homeowners, and communities to devise better, more practical solutions.