Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Second Home Numbers and Prices Fall in Key UK Hotspots

House prices are falling in many of Britain’s second-home hotspots, and the number of second homes in England is also declining, according to the latest data. Analysis by Rathbones found that house prices fell in 19 of the 25 areas with the highest density of second homes, while the number of second homes in England has dropped by around 12,000 since 2024.

Rathbones’ analysis shows that price falls in these areas are more pronounced than in the wider UK, where only 26% of local authorities saw house price declines. By the first quarter of 2026, 20 out of the 25 local authorities with the highest concentration of second homes had experienced price drops. Many of the worst-performing areas were coastal and rural markets traditionally associated with holiday-home demand. For example, South Hams in Devon, which has the highest concentration of second homes in England, recorded an annual price fall of 6.6%.

Separate government figures indicate that the number of second homes in England has fallen by about 12,000 since 2024, representing a decline of 4.3%.

Rathbones attributes the reduced appeal of additional property ownership to “unfavourable tax changes.” The Stamp Duty surcharge on additional properties was increased from 3% to 5% in October 2024. Councils in England can now charge a 100% council tax premium on second homes, and local authorities in Wales can impose premiums of up to 300%.

The Telegraph also reports that Liberal Democrat MP Andrew George is proposing new planning powers to allow councils to restrict the conversion of homes into second homes in areas facing housing shortages. This proposal is a Private Member’s Bill and is unlikely to become law, but it reflects a growing political backlash against second-home owners.

These developments are relevant for UK letting agents and inventory clerks, as changes in second-home ownership and pricing may impact demand for letting and property management services in affected areas.