Why that holiday home is getting harder to buy

range, this would mean stamp-duty of eight per cent.

This would equate to an eye-watering £24,000 tax on a £300,000 second home.

Alongside national policy, there have also been moves locally to clamp down on second home and holiday home purchases. Fearing the impact that holiday homes were having on the local economy, the residents of St Ives, Cornwall recently held a referendum on restricting the development of new homes in the town – unless they are for those using it as a ‘principle residence’. In other words, new developments can’t be used as holiday homes.

A developer tested the legality of this decision, taking Cornwall Council – represented by our barristers – to the High Court. The argument was that the referendum result, and the wider St Ives neighbourhood plan which gave rise to it, was an infringement of Article 8 of the European Convention on Human Rights (ECHR) – the right to a home.

The court found in favour of the council and the referendum result was upheld. That decision has not been taken further and there is evidence that other authorities are considering introducing similar restrictions.

Either way, it is clear that purchasing a holiday home isn’t as simple as it once was and potential buyers should consider local circumstances before heading to Rightmove. Sponsored column