A clampdown on second-home taxation is unexpectedly boosting the UK’s luxury rural property sector. Sales of homes valued above £750,000 surged 7% in June, as declining prices and more listings attract buyers back to the countryside.
The change is driven by new council tax rules, allowing Welsh councils to quadruple and English councils to double taxes on holiday homes. This has prompted many second-home owners to sell, resulting in a 9% rise in country house listings in the second quarter.
With more properties on the market and prices falling, buyers now hold significant negotiating power. Experts say that homes priced correctly are selling quickly, while those with inflated prices are left behind.
Analysts see the current momentum as a sign of sustainable recovery, with buyers enjoying their strongest position since 2018. The market has shifted away from the intense competition of the pandemic years.