A tough new tax regime for holiday homes is breathing new life into the UK’s rural property sector. Sales of country homes valued above £750,000 rose 7% in June year-on-year, as falling prices and increased listings draw buyers back to the market.
The surge follows recent council tax changes, with Welsh councils now able to quadruple taxes on second homes and English councils able to double them. These reforms are prompting many owners to sell, resulting in a 9% increase in country house listings in the second quarter.
This influx of properties, combined with lower prices, has shifted the balance in favor of buyers. Experts say that homes priced correctly are selling quickly, while those with unrealistic price tags are left unsold.
Analysts are cautiously optimistic, suggesting that June’s sales momentum could signal a sustained recovery. Buyers now enjoy more negotiating power than at any time since the Brexit uncertainty of 2018.