The second-home ownership bubble in the Westcountry could finally be about to burst, according to a financial planning expert.

Peter McGahan, managing director of Truro-based Worldwide Financial Planning, says Chancellor Alistair Darling's decision to increase capital gains tax from April 2008 may encourage many second home owners to sell promptly.

And with the increase in supply, Mr McGahan believes the South West property market could experience a fall in prices - making more houses available for first-time buyers.

"With the increase in capital gains announced, I would expect more properties to come onto the market as people aim to get the best from their investments before April 2008," said Mr McGahan.

Peter McGahan, Worldwide Financial Planning: "With the increase in capital gains announced, I would expect more properties to come onto the market as people aim to get the best from their investments before April 2008."

"Those individuals who were thinking of selling their commercial property or business are also very likely to lose out after April 2008, so expect to see a rush to the market between now and then

"In Cornwall it should also become easier for first-time buyers to get on to the housing ladder. Furnished holiday lets, for example, are classed as a business asset. If they sell their asset after April 2008 most will see an 80 per cent increase in capital gains tax. Expect to see a flood of these properties onto the market."

With the debate on the housing issue in the Westcountry steadily growing, and the rise of groups wanting more affordable housing, as well as those wanting less second homes, the news should be welcomed, according to Mr McGahan.

"It's been difficult for many people in Cornwall, but if you look at the economy over a long period of time you'll know that we’re always in the middle of the cycle," said Mr McGahan.

"The best place recently to invest your money has been property, but we're now seeing a change and we’re helping people invest in other areas.

"So younger and first-time buyers should prepare to take advantage."

A recent Western Morning News (WMN) survey revealed that one in every 27 properties in Devon and Cornwall is a holiday home.

The WMN figures show that 14,694 homes in Devon are used part time, while this figure is 13,251 in Cornwall.

There are over 20,000 empty properties across both counties, and nearly half of these have been empty for more than six months, the survey added.