Cornwall LivingIssue #157
Property Perspective
With the result of the General Election and the subsequent change of government, we thought we’d take a look at the impact it has and will have on the Cornish property scene.
The Cornish property market is unique. No other county encourages such a mix of buyers, and as we enter 2025, it is experiencing a period of notable transformation. A confluence of economic factors, policy changes and shifting buyer preferences is reshaping the housing landscape in the region.
House prices are on the move again! According to HM Land Registry’s latest report, they rose by 3.4% in October – though the official figures won’t land until February. This brings the average UK house price to a tidy £292,000. In Cornwall, things are a bit different. The average price here sits slightly higher at £301,000, but that’s down 1.5% compared to last year. Meanwhile, the broader south west region has seen a 2.7% increase. It’s a reminder that Cornwall’s property market marches to its own beat.
Mortgage rates, of course, remain the big player in this dance. Current rates of 4.83% for five-year fixes and 5.08% for two-year fixes might sound steep, but there’s good news on the horizon. Experts predict they’ll drop to around 4.0% in 2025, giving buyers a little breathing room. Lower rates could nudge more people onto the ladder, but let’s not forget – this all depends on the wider economic mood.
Then there’s the second home debate, which shows no signs of cooling. The government’s plan to hike the stamp duty surcharge on second homes to 5%, coupled with a doubling of council tax by 2025, is designed to tackle housing shortages. While these policies aim to ease local pressures, they could also shake up investment in holiday lets, with ripples across the local economy.
Looking ahead, Cornwall’s housing market faces a bit of a balancing act. Falling mortgage rates might bring a buzz of activity, but the long-term impact of second-home policies remains unclear. It’s a tricky puzzle.
In this dynamic environment, the insights of local estate agents are invaluable. Their first-hand experiences and nuanced understanding of market subtleties provide a comprehensive perspective on the challenges and opportunities that lie ahead for Cornwall’s property sector. As such, we’ve canvassed the expert opinion of five Cornwall-based estate agents to get an ‘on the ground’ opinion of what’s happening. Here are the results.
Emma Mather – Managing Director – The Mather Partnership
“We are currently experiencing a busy market with numerous buyers eager to move. It’s a very price-sensitive market, meaning properties priced attractively are getting significant interest and offers. Although there are fewer buyers for second homes and holiday lets, the general demand for residential properties remains strong.
“To succeed in this market, you need a proactive approach guided by an experienced team. That’s where we come in. Our team at The Mather Partnership has a wealth of experience and a proven track record of helping clients navigate the complexities of buying and selling homes. We understand the importance of pricing your property correctly and marketing it effectively to attract the right buyers.”
www.thematherpartnership.co.uk
Martyn Rohrs – Director – Rohrs and Rowe
“The 2024 Cornish housing market was primarily driven by house movers rather than holiday home buyers. Demand for holiday lets particularly declined due to the tax changes made in the spring and autumn budgets, which ended the previously favourable regime. Cornwall Council’s announcement to double council tax on second homes from April 2025 further dampened interest among some buyers.
“The summer General Election and subsequent change in government led to widespread speculation in the national press about further tax reforms that would take place in Labour’s first budget, further cooling some sectors of the market. Many buyers adopted a cautious “wait and see” stance. However, after the clarity that was provided by the October budget, buyer confidence began to recover, with sales activity picking up considerably in the autumn. Many seller’s price expectations adjusted during the year, too, narrowing the gap with buyers’ budgets and further facilitating transactions.
“Looking to 2025, there is considerable optimism. With clearer policies and renewed momentum, stronger buyer demand is anticipated across all markets. Both local and national buyers, of all age groups, remain eager to live or own a home in Cornwall. These factors create a positive outlook for the market and present opportunities for sellers to capitalise on improving conditions.”
default
Simon Poole – Manager – Jackie Stanley
“2024 has certainly been a challenging marketplace, what with a change of government, autumn budget statement and the general economic climate. A huge number of new listings have come on throughout the year, which have somewhat flooded the market at times and created a buyer’s market in some areas. Having said that, we have still seen a fairly active market with sensible pricing as the key. There are still challenges ahead, but with the budget out of the way, a normal market can resume. I do feel the market has turned a corner, and we will experience a more positive outlook in 2025.”
Mark Price – Branch Manager – Jackson Stops
“Cornwall’s property market remains as unique as the region itself, but recent challenges have required both buyers and sellers to navigate an evolving landscape. Factors such as rising interest rates and fluctuating demand have created a complex environment, making expert guidance more crucial than ever.
“Here at Jackson-Stops, we pride ourselves on being a small, dedicated team with in-depth knowledge of Cornwall’s property scene. This allows us to provide personalized, tailored advice to our clients, old and new, helping them make confident decisions in an uncertain market. Flexibility and preparation are key to thriving in these conditions. Our vendors can expect and benefit from realistic pricing strategies based on current market trends, while buyers should stay informed, act decisively, and work closely with experienced agents to seize opportunities as they arise.
“Despite the challenges, Cornwall’s property market, despite the aforementioned, continues to attract those drawn to its breath-taking coastline, rolling countryside and picturesque villages. The timeless beauty of the region – paired with its unique lifestyle and sense of community – remains a powerful draw for buyers near and far. By combining our deep local insight with a commitment to delivering exceptional service, we’re able to help our clients achieve their property ambitions – even in tough times.”
Jane Thomas – Sales Manager – May, Whetter & Grose – Fowey
“The Cornish property market is navigating an intriguing chapter as 2025 begins. Over the past year, we at May Whetter & Grose have seen shifting trends driven by legislative changes, buyer priorities, and a renewed focus on sustainability. These dynamics present both challenges and opportunities for homeowners, vendors and prospective buyers alike.
“One significant influence has been the introduction of higher council tax premiums on second homes, aimed at addressing Cornwall’s housing affordability crisis. This has tempered speculative purchases, and together with an increase in the SDLT for second homes, we are seeing a change in focus. The aim is that more properties become available to local families, however, this is dependent on the type of properties coming to the market as not all second home stock is suitable for families and main home living. The policy attempts to rebalance the market in favour of primary residences to reduce the hollowing-out effect often seen in picturesque Cornish towns – time will tell as to how successful this will be.
“Despite these changes, demand for homes in Cornwall remains strong. Remote working has continued to make our beautiful county an attractive prospect for those seeking lifestyle relocations.
Buyers are increasingly prioritising energy efficiency and eco-credentials, making properties with solar panels, heat pumps, or strong EPC ratings particularly appealing.
“At May Whetter & Grose, we pride ourselves on guiding clients through this evolving landscape with expert advice and a deep understanding of the local market. If you’re considering buying, selling, or renting in Cornwall, now is a pivotal moment to act.”
The Cornish property market has always held a unique allure, and 2025 appears to be no different. With economic policies, shifting buyer dynamics, and a new government shaping the landscape, the region finds itself at a crossroads. Though challenges remain, such as the impact of second-home legislation and evolving buyer confidence, Cornwall’s appeal continues to shine through.
Navigating this changing market requires a combination of realism, adaptability and local expertise. The outlook is one of cautious optimism: while buyers and sellers must adjust to new norms, there are opportunities to be found. Cornwall’s enduring desirability, bolstered by the promise of renewed stability and interest rate changes, suggests a brighter horizon ahead.
As the property market transitions into this next phase, it remains rooted in the charm and resilience of the region – an enduring testament to Cornwall’s unique place in the hearts of many.