Tourism in the UK is under threat due to the slashing of tax breaks, the rise in bills as well as Brits choosing cheaper holidays abroad over local staycations.
The surge in utility costs and council tax is making it harder for Airbnb and holiday property owners to keep businesses afloat in the UK.
Also, the Furnished Holiday Lettings (FHL) regime, which gives tax breaks to vacation homeowners, is being axed next year which will add even more cost.
Commercial leader at Together Travel Zak Ali warned that travel agents could face mass job cuts due to the shortage of available properties.
Mr Ali said that despite Cornwall being one of the UK’s top holiday destinations, it is losing out to week-long package deals abroad becoming cheaper than holiday lets.
A tourism expert has warned that many people who own holiday lets are selling up. (Pictured, Porthtowan Beach in Cornwall)
Starting next year, revenues and profits from FHL will merge into the owner’s wider property business and will be taxed similarly to all property earnings and capital gains. (Stock image of Tenby, Wales)Â
He also warned that the changes to FHL regulations in April 2025 are causing widespread worry and complications, with many people selling their properties.
Speaking to Express.co.uk, he said: ‘Agents are losing properties as a direct result of not being able to deliver on bookings because of the uncertainty on the market.
‘I know for a fact larger agencies who have a lot of staff have been making redundancies because of lower expected income and the dwindling numbers of properties.
‘We’ve seen it in the summer we’ve just had already, the destination has not been as strong as it has been historically.’
Starting next year, revenues and profits from FHL will merge into the owner’s wider property business and will be taxed similarly to all property earnings and capital gains.
Also, there is a 100 per cent hike in council tax for Cornish domiciles classed as second homes coming into force in April.
According to Zoopla, Truro in Cornwall experienced the largest surge in homes for sale in September compared to any other region.
Former Chancellor Jeremy Hunt announced the axing of the FHL regime last March.
The surge in utility costs and council tax is making it harder for Airbnb and holiday property owners to keep businesses afloat in the UK. (Pictured, St Ives in Cornwall)
Alistair Handyside of the Professional Association of Self-Caterers slammed Mr Hunt’s decision to scrap tax relief for holiday lets, saying it will ‘harm the visitor economy’
He estimated the reduction would bring in £300million for Treasury coffers, but critics warned at the time that it would hammer areas reliant on tourism for their income by pushing people out of the market.
Alistair Handyside owns Higher Wiscombe, a group of luxury holiday cottages in East Devon, and also runs the Professional Association of Self-Caterers.
He told MailOnline: ‘I’m very disappointed – these were hard fought for as a set of allowances to help small businesses and they’ve been removed with a single sentence with no justification or explanation about what will come next.
‘It will not raise the money they say it will, that is tosh. I can’t see it winning any votes from anyone who haven’t already made up their minds, but it will alienate the owners of the 127,000 properties that will be affected.
‘But worse of all it will damage the visitor economy. Fewer holiday lets mean fewer visitors to pubs and attractions. I can’t see any positive in this.’
