House prices in Britain’s most sought-after seaside towns fell amid Labour’s crackdown on second homes, data have revealed.
Properties in all but two of the top 10 most exclusive locations such as Cornwall, Hampshire and Dorset dropped in price by as much as 7pc over the past 12 months, according to analysis by Rightmove.
Sandbanks in Dorset – home to “Millionaire’s Row” – is among the most expensive locations for a seaside bolthole in the country. But property prices slumped 4pc in the year to May, taking the average cost to £1,119,945.
In Sidmouth, Devon, values fell by 6pc to £450,971. House prices sank the most – 7pc – in St Ives and Lyme Regis.
Lucian Cook, of estate agency Savills, said: “There are high levels of second home purchases in those markets, and those buyers are discretionary. So whenever you see pressures in the housing market, those buyers are thinner on the ground.”
He pointed to the recent changes to second home taxation in particular as a contributing factor.
Last April, local authorities were granted the power to charge a 100pc council tax premium on second homes. More than 200 have opted to do so and the average second home owner now pays roughly £4,784 a year.
The Telegraph has campaigned for the levy, which was introduced by the previous Conservative government, to be scrapped.
Meanwhile Rachel Reeves, the Chancellor, further deterred second home buyers by increasing the stamp duty surcharge on additional properties from 3pc to 5pc.
