As the demand for housing in Cornwall rises, local authorities are introducing new measures to make better use of available housing and balance the needs of full-time residents with those who own second homes. If you own a second home in Cornwall, recent changes to council tax regulations will impact your property costs starting in 2025. Here’s what you need to know.
Understanding the new council tax premium
Under the Levelling Up and Regeneration Act, Cornwall Council will introduce a council tax premium of an additional 100% for second homes, effective from 1 April 2025. This means that second-home owners will pay double the standard rate of council tax, aligning with efforts to encourage fairer housing opportunities for local communities.
A second home is defined as a furnished property owned for personal use but not considered a main residence. If your Cornwall property falls into this category, it will likely be subject to the premium—unless it qualifies for an exemption.
Exemptions to the second homes premium
While the new council tax premium applies broadly, certain types of properties are exempt. The following are not subject to the premium:
Annexes that are part of the main home
Job-related accommodation where the property is linked to employment
Occupied caravan pitches and boat moorings
Seasonal homes where local regulations prohibit year-round or permanent occupancy
Additionally, some 12-month exemptions apply in specific cases, including:
Properties with restricted occupancy conditions under the Town and Country Planning Act 1990, such as restrictions preventing continuous occupancy for 28 days or more within a year and designation as holiday-use-only or non-primary residence
Properties actively marketed for sale or let, provided they are advertised at a fair market rate
Properties that have recently gone through grant of probate or letters of administration may also qualify for a 12-month exemption
Cornwall Council is currently reviewing all properties classified as second homes. If your second home is now permanently occupied or has undergone a change in usage, it’s essential to notify the Council.
Converting a holiday let to business rates
For properties rented out as holiday lets, the Valuation Office Agency (VOA) determines if a property should be charged council tax or business rates. To qualify for business rates, your holiday let must meet the following criteria:
The property has been available to let commercially for at least 140 nights in the past 12 months and will continue to be available for at least 140 nights in the coming year
The property has been commercially let for a minimum of 70 nights in the past 12 months
Holiday lets initially incur council tax until all these requirements are fulfilled. Once met, you may request the VOA to reclassify your holiday let under business rates. Note that this decision lies with the VOA, not your local council.
Preparing for 2025 and beyond
For second-home owners in Cornwall, these upcoming changes represent a significant shift in property expenses and regulatory compliance. Proactively understanding and preparing for these requirements will help you make the most of your second home while staying in line with local regulations.
Turn your second home into a holiday let
One effective way to mitigate the impact of these increased council taxes is to turn your second home into a holiday let, provided it meets the criteria mentioned above. By doing so, you could qualify for business rates instead of the higher council tax premium, potentially reducing your overall property costs.
Contact us for expert holiday let management in Falmouth
Navigating these changes can be complex, but we're here to help. If you need assistance with managing your holiday let or Airbnb in Falmouth, get in touch with us. Our expert team can guide you through the new regulations and ensure your property is managed efficiently and effectively.
Turning your second home into a holiday let not only helps mitigate the new council tax premiums but also maximises your property's potential as a source of income. Let us help you make the transition smoothly and successfully.