Second home ownership hits new high in North Devon

The number of second homes and holiday lets in North Devon has risen to its highest level in seven years, despite new measures aimed at curbing the trend.

Figures obtained by the North Devon Gazette through a Freedom of Information request to North Devon Council show that as of April 2025, 2,153 properties in the district were registered as second homes, furnished holiday lets, or had moved from council tax to business rates because they now operate as holiday accommodation.

The figures relate solely to the North Devon Council area and do not include neighbouring Torridge District Council, which is governed separately.

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The total marks a significant increase from 1,699 in 2018, with a sharp rise seen over the past two years, up from 1,768 in 2023 and 2,058 in 2024.

Cllr Graham Bell, lead member for housing and homelessness at North Devon Council, said it was “disappointing to see holiday lets still on the rise,” although he noted signs of progress since the introduction of higher council tax on second homes.

ABOVE: Cllr Graham Bell, Lead Member for Housing and Homelessness at North Devon Council, speaking on second home ownership in the district. © North Devon Council

“Although, the latest figures do show that in the year since the introduction of the second home increase, the figures may have stalled. But it is only the first year, and while we endlessly seem to wait for progress, people are now facing another Christmas in insecure housing,” he said.

“Over the last decade second home ownership has skyrocketed in parts of Devon with areas like Croyde, Woolacombe, Salcombe, Thurlestone and Beer being hollowed out by an influx of fair-weather homeowners who come for the surf, but have zero interest in the community. Since 2019, the number of people searching for a social and affordable home has doubled.

“Doubling council tax on second homes appears to have slowed, but not yet reversed, the surge in second home ownership in Devon. While the initiative has not reversed the problem, it has created a new revenue source that district councils like North Devon have set aside for housing support projects to offset the harm caused by the loss of so much housing stock.

“In North Devon, this revenue is being placed into ensuring that the council has a portfolio of temporary accommodation for local residents who find themselves homeless. This means that we are able to act quickly and effectively to respond to families who find themselves in a sudden housing crisis. This has made us more responsive to families in need and helped keep families out of expensive B&B arrangements.

“One of the big dangers of the upcoming Unitary Authority is that the new centralised authority will lack the local connections and insights of the existing housing authorities and may decide to wipe away the housing reforms, safeguards and improvements made by the current district councils. As Devon proceeds with Local Government Reorganisation, it is vital that housing gains are not lost in transition. The Unitary Authority may have its own set of rules and priorities but it must be guided by the principles of the housing authorities that preceded it.”

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According to the Devon Housing Commission report, which examined housing pressures across the county, the issue is particularly evident in North Devon. 

The commission noted that some wards have over 20 per cent of properties operating as holiday lets, warning that several parishes risk becoming “hollowed out” communities.

The report highlighted evidence gathered in Ilfracombe and other coastal areas showing the strain caused by second homes and short-term holiday accommodation. 

It drew parallels with the South Hams, where the increase in holiday lets coincided with a drop in local population and the closure of a school.

North Devon Council’s Housing Strategy 2025 further recognises the connection between demand for holiday accommodation and homelessness. 

It states that while poverty and rising rents remain key drivers of homelessness, external pressures such as the growth of holiday lets also contribute to the crisis.

The strategy confirms that since April 2025, the additional revenue from doubling council tax on second homes has been ring-fenced for housing projects across North Devon.

On social media, local residents have expressed divided views about the role of holiday accommodation in the area. 

Under powers granted by the Levelling-Up and Regeneration Act 2023, North Devon Council voted on 17 January 2024 to introduce a 100 per cent council tax premium on second homes, effectively charging owners twice the standard rate from April 2025.

For council tax purposes, second homes are defined as furnished but unoccupied dwellings that are no one’s “sole or main residence.” 

This includes properties subject to planning restrictions on permanent occupation.

The government has introduced a number of mandatory exceptions to the premium, such as homes being actively marketed for sale or rent (up to 12 months) or dwellings where permanent occupation is prohibited. 

These national exceptions came into effect alongside the premium on 1 April 2025.

One contributor, who contacted the Gazette, said there was growing confusion between holiday lets and second homes.

“Towns and villages like Braunton, Croyde, Lynton and Instow need holiday lets, otherwise all the businesses would have to close, as locals just don't have the funds to always support them. Holiday lets are the only way for communities like these to survive.

“Second home owners are people who use the property for private use, this could be weekly, monthly or even yearly. This is the problem. I see it time and time again, they turn up in their car full of shopping bags from the supermarket and never venture into any of the local establishments. This is one of the many reasons small villages are struggling.

“The new double council tax has only made it slightly better, as a few of the second home owners have now converted to holiday lets. The big issue is that lots have issued Section 21s, effectively kicking people out of homes and communities they have belonged to for many years, only for the house to sit empty with a for sale sign outside.”

While local authorities hope the new council tax measures will eventually reduce second home ownership, both official reports and community voices suggest that the housing pressures in North Devon remain acute.

Cllr Bell said it was essential that reforms made by district councils are not lost during Devon’s transition to a unitary authority. 

For now, the data shows a continuing rise in properties taken out of the local housing market, and the challenge of balancing tourism with sustainable community life remains as complex as ever.