The West Country, particularly Cornwall, has become the UK's most dysfunctional property market due to extreme seasonality and second-home ownership. ONS data shows guest nights in short-term lets were 938 per cent higher last August than in January, far exceeding London's 84 per cent difference. This seasonal economy drives housing unaffordability for locals.

Since interest rates rose in 2022, house prices have fallen sharply in holiday hotspots: Cornwall down 6.5 per cent, Torridge 8.2 per cent, and the Cotswolds 10.3 per cent. The price-to-earnings ratio in Cornwall improved from 10.7 to 8.3, but affordability remains stretched. Rightmove data reveals listings surged 327 per cent in Torridge and 234 per cent across Cornwall over five years, concentrated in high-end coastal markets like Rock (£1.39mn) and St Mawes (£1.92mn).

Local earnings average £35,000 — 10 per cent below the UK average — while part-time workers earn just £13,400. The surge in unsold luxury homes isn't trickling down to help first-time buyers. With London's market stagnant and second-home taxes rising, the flow of wealth has slowed, but climate-driven demand may revive the market.