New data on UK holiday homes reveals a rise in holiday properties since before the pandemic and according to one holiday home insurer, some areas are turning into ghost towns, with homes left unoccupied and on the market for sale.

With a downturn in bookings, council tax doubling in some areas and the furnished holiday lets tax relief being withdrawn, there has been a surge in holiday homes being put up for sale.

Holiday home insurer Schofields has analysed the latest data from the Office for National Statistics (ONS), which revealed those areas that are significantly rising but also showing those towns that are becoming ‘ghost towns’.

The firm stated: ‘The UK Government has unveiled increased taxes for second homes aimed at tackling the growing issue of the lack of affordable homes across the country. These policies aim to encourage second homeowners to either make greater use of their properties, release them back into the housing market or switch to long-term lets. As a result, many second homeowners are choosing to sell their holiday homes to avoid the higher taxes and cash in on the rise in house prices since the pandemic. This trend is particularly evident in coastal towns and rural villages, where a significant number of properties are being withdrawn from the holiday rental market and listed for sale.’

Schofields says that areas such as Cornwall, the Lake District, and parts of North Wales have seen significant rises in property prices, largely driven by the demand for holiday homes and investment properties. While tourism has boosted local economies during peak seasons, many towns see a drop in population during the off-season and places like Salcombe in Devon and Whitby in North Yorkshire are at risk of becoming ghost towns outside of the tourist months.