Why Owning A Second Home Is No Longer Worth It

9th March 2024

Jeremy Hunt sent a clear message to Britain's second home owners in his Budget this week: sell up to make way for first-time buyers.

The Chancellor laid out plans to abolish tax relief for holiday let owners, scrapped stamp duty discounts for multiple home purchases and encouraged second homeowners to sell by cutting capital gains tax.

Critics say the reforms will make second home ownership the preserve of the very wealthiest and may do little to help ease the housing crisis for young buyers.

However, after years of bad news for property investors, is it now finally time to sell up - or is there still money to be made out of bricks and mortar in Britain?

In his Budget on Wednesday, Mr Hunt seemed to give with one hand and take with the other. He slashed the higher rate of capital gains tax (CGT) on property from 28pc to 24pc, a potential saving of nearly £4,000 on a £100,000 gain - depending on a seller's income.
But the CGT tax-free allowance is also set to halve next month - from £6,000 to £3,000 - having steadily been reduced over the past few years.

For second homeowners who let their properties to holiday goers, Mr Hunt threw in yet more incentives to sell.

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