Cornwall risks seeing its seaside towns empty of tourists, with many holiday home owners reportedly forced to sell because there is not enough business to go around.

Travel companies have warned the mass exodus is having a “detrimental” impact on the industry as many tourists snub holiday breaks for cheaper overseas trips.

Skyrocketing utility costs and council taxes have impacted Airbnb and holiday home owners, making staycations in the UK unsustainable.

Zak Ali, head of sales at Together Travel, told Express.co.uk that travel agents are facing mass redundancies because there are not enough properties to go around.

“Agents are losing properties as a direct result of their inability to honor bookings due to the uncertainty in the market,” he said.

A major blow to landlords is the abolition of furnished holiday lettings (FHLs) next year. FHLs are short-term holiday lets that previously benefited from a tax reduction, but will lose these benefits from April 6, 2025, driving up costs for owners.

Mr Ali added: “The FHL changes which will soon come into force are also causing a lot of panic and problems for landlords selling. »

From next year, FHL income and gains will be considered part of the owner’s real estate business and will receive the same tax treatment as all other property income and gains.

Cornish properties considered second homes will face a 100% increase in council tax bills, also from April 2025.

Mr Ali explains that “retaining staff is currently a real challenge” in the real estate sector, as companies do not have enough accommodation to manage for their employees.

He said: “I know for a fact that large agencies with lots of staff have made redundancies due to lower expected revenues and fewer properties. »

Truro, Cornwall, saw the biggest increase in homes for sale in September than any other region in the country, according to the latest house price index from property site Zoopla.

There were 47 per cent more properties on the market last month in and around Truro compared to the previous six month September average.

Many people choose to holiday in Cornwall, one of the UK’s top holiday destinations. However, as week-long overseas packages become cheaper than holiday rentals, “it is losing a key source of tourists”.

Mr. Ali adds: “We have seen over the summer that we have just had, the destination has not been as strong as it has been historically.

“The tourism industry will be negatively impacted. I think this would hurt the overall revenue generated by tourism.

Cornwall’s tourism industry is worth £2 billion a year, or 15 per cent of the local economy, with the region receiving four million overnight visits a year, according to Cornwall Council.