The beautiful little UK seaside town second-home owners are abandoning - 'It's terrible!'

A UK seaside town that thrives on tourism has seen a few changes this summer due to the Government doubling down on one policy. One contentious issue that particularly affects picturesque Cornish holiday hotspots has seen many locals calling for a new strategy. However, not everyone is happy since the Labour Government enabled councils to charge a premium of up to 100% on the council tax bills of second homes.

Earlier this year, in April, the Government's Levelling Up and Regeneration Act 2024 gave local councils the power to charge a council tax premium on second homes. Cornwall Council administered the decision to introduce an additional 100% council tax on second homes - and it's something that many locals have embraced. But in the "cosmopolitan" Cornish town of Fowey some are not thrilled about the changes with one business owner describing the second home tax as "terrible".

One local described Fowey as having "loads" of second homes - and he'd seen many changes since the 1960s when there was "more of a community" all-year-round.

But Fowey - pronounced Foy - has long been a popular tourist destination, partly made famous by novelist Daphne Du Maurier's book 'Rebecca' - and most residents born and bred in the town have got used to the busy vibe during summertime.

The August bank holiday weekend saw the Cornish town teeming with tourists; however, residents mentioned that there have been "more houses up for sale" since the additional council tax on second homes was introduced.

Caroline Cooper runs her business the 'Shop @ No3' selling "easy coastal living" items along with traditional jam-first Cornish cream teas, but she said it's been a "slow season" in Fowey.

Caroline said: "It's been a slow summer because the economy is so poor and people are not spending their money on expendable products.

"I think the country is in recession, but the Government is not talking about it.

"Also, the new second home tax is terrible - and there's a lot more houses up for sale, but it's not helping anyone because they are not affordable housing.

"Second home owners do integrate and become part of the community, they keep properties nice and therefore bring more tourism to the town.

"Now the Government is pinching that and making it hard for people to make a living, I've seen Fowey have peaks and troughs over the years, and it will pick up again when the economy does."

Recently, Housing Secretary Angela Rayner has come under fire after implementing the second home tax hike - and as she adds a third leisure holiday-type home to her own portfolio, she's been urged to be upfront about her own council tax.

However, when the topic was debated in Parliament a few months ago, the Exchequer Secretary to the Treasury, James Murray spoke of the impact of second homes and holiday lets.

At the time, he said: "While short-term lets and second homes can benefit the tourist economy, we recognise that they can impact the availability and affordability of main homes in some communities.

"That is why we have enabled councils to charge a premium of up to 100% on the council tax bills of second homes, increased the higher rates of stamp duty land tax on the purchase of second homes and abolished the furnished holiday lets tax regime."

The main change to holiday let tax rules is that now, 'favourable tax treatment' and profits from Furnished Holiday Lets (FHLs) are treated as part of the property owner's business when it comes to tax - in the same way as is in place for long term residential lets.

Other locals in the charming seaside town of Fowey have shared their views on second homes and holiday let ownership.

John Barker runs his own boat offering scenic river cruises and trips to nearby Looe via Fowey Boat Hire, he's Cornish and has lived in the town for 27 years.

He said: "The summer season has been good, busier than last year due to the great weather - last year was wet and windy, but Fowey does go very quiet in the winter.

"There's a lot of second homes here, I grew up here since 1967 and there used to be more of an all-year-round community years ago.

"The cruiseliners that come for the summer season are really beneficial for the town these days - and bring in income for the local businesses.

Born and bred trio, Gary Jane, Terry Butler and Mark Housman agree that the visiting cruise liners are "brilliant for the town".

Gary, who is one of Fowey's RNLI lifeboat crew, explained that "years ago, the town was really quiet - and still is to a certain extent in wintertime".

"Without the holiday lets and second homes there would be very little industry here really - and the seasonal cruiseliner visits do bring income to the town", he said.

The three locals explained that they've generally embraced the changes in Fowey over the years - and still love the charming town as much as ever.

Holiday makers Gina Fisk, Toby Keepence and their sons Eric and Max were visiting the town for the first time on the August bank holiday - and they've already fallen in love with Fowey.

Gina said: "It's beautiful here and it's got a great atmosphere - looking at the sea it's just immensely picturesque and a different pace of life."

Caroline from Shop @ No3 added that Fowey is a "great place to live" with a "lovely community" and a "friendly, nice atmosphere," despite her opinion on the second-home tax changes.

She described the seaside town as having a "cosmopolitan feel" and being a "nice family place" all-year-round.