Cornwall campaigners say Jeremy Hunt's taxes for holiday let owners are just a sticking plaster

ITV News' Charlotte Gay spent the day hearing from campaigners in Cornwall.

People across Devon and Cornwall are cautiously welcoming news that tax breaks for second home owners are being scrapped, but campaigners say it’s just a sticking plaster.

The furnished lettings regime gave landlords tax breaks when they let out holiday homes for short periods.

However campaigners say that’s led to a big rise in holiday homes and a shortage of long term rentals for local people.

Cath Hayes from the Cornwall group First Not Second Homes said: "There will be ultimately some people that go from short term letting because it's de-incentivising it.

"But in terms of driving actual property into long term letting, no, it's not enough. It's a sticking plaster on a bleeding artery.

"We've got a really serious situation here that we can't build our way out of. And there is no shortage of housing in Cornwall. It's how that housing is being used."

Chancellor Jeremy Hunt told the House of Commons: “In recent months following tenacious representation from the honourable members for St Austell and Newquay, North Devon, Cities of London and Westminster, Torbay and Truro and Falmouth. I have been looking closely at our furnished holiday lettings tax regime.

“I am concerned that this tax regime is creating a distortion, meaning there are not enough properties available for long term rental by local people. So to make the tax system work better for local communities. I'm going to abolish the furnished holiday lettings regime."

The regime gave landlords certain tax breaks when they let holiday homes out for short periods.

Ian Manley from Celtic Estate Agents in Camborne watched the budget being delivered and said: "There are very few properties available, I think right across the south west and Cornwall.

"We get people ringing every day. The same people, really. I think it'll swing the tide. It needs to be implemented for a while yet.

"I think if they were to go the whole hog and give relief, higher relief or some relief on a residential let, then that would make a world of difference as well."