Holiday Home Sell Off = Holiday Let Price Rise

Furnished holiday home owners face some difficult decisions before the latest budget measures kick in, in April of next year; Previously owners of furnished holiday homes were able to defer capital gains tax payments or offset losses made on their investment against their income. In order to qualify for these benefits, secondary homes had to be furnished, run as a commercial business and available to rent, by the public for at least 140 days a year, with actual lettings for 70 days in the year.

Alistair Darling has put a stop to all benefits, and the result could affect more people than the secondary home owners.

Such measures will make ownership of a holiday home to let far less attractive investment. Many might consider selling their property before next Aprils deadline; sale prices would fall due to a surplus which could provide some bargains for those of us with spare cash. The other side of course is that the letting market will have fewer properties, and owners will be able to charge more.

For those people who have headed the lessons of the credit crunch, tightened their belts and decided to holiday in the UK this year, the price of their holiday accommodation has just gone up. The 2% beer tax hike, the closure of pubs with B&Bs and hotels all impact on the holiday at home market, which has struggled for long enough.