A lack of financial return on savings in the bank has seen an increase in homeowners turning their attention to investing in a holiday let, according to new research.
Almost three quarters of homeowners are eager to look at ways to invest savings and increase their financial portfolio, with nearly two thirds considering a holiday let a good investment.
The research was commissioned by Original Cottages, the national holiday cottage company with the local touch for guests and homeowners.
Original Cottages have seen this growing trend in action, with a 40% increase in homeowner enquiries about holiday lets, compared with last year.
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Given the surge in staycations, it’s unsurprising to see that almost three quarters (73%) of those surveyed were more likely to consider investing in a holiday let, compared with how they would have invested their savings five years ago.
Rachel Springall said, “In such a low interest rate environment it’s understandable for consumers to seek out alternative ways to invest, but not every consumer may feel comfortable to risk their cash by investing in the stock market.
“There are lots of different investment opportunities out there compared to a simple savings account and, in most cases, savers with a flexible savings pot could be earning very little each year on their cash.
“Alternative assets can appreciate over time in value, but it is important consumers get advice before investing. Property has been an enticing investment opportunity in recent years due to rental demand and homeowners can let out their home or buy a second home to meet the demand of UK holiday makers.
“The surge in staycations has made the prospect of holiday let even more appealing and if consumers are unsure where to start, seeking some guidance to make the process simple and stress-free is wise.”
Almost two thirds (63%) of those surveyed agree a holiday let is a good investment, with over half (58%) interested in letting existing properties they own, while over a quarter (29%) of people would consider purchasing a property to convert into a holiday let.
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Whilst almost half (46%) of homeowners surveyed said a holiday let would be their ideal investment, the research also highlighted homeowners have considered alternatives ways to make the most of savings including cryptocurrencies (21%), a business (18%) and precious metals (17%).
Hannah Cooper, Regional Head of Property Recruitment for Original Cottages said, “Staycations have driven demand for holiday lets as more people than ever are holidaying closer to home, presenting a great investment opportunity.
“Whilst our research revealed there is an appetite to invest in a holiday let, well over a third (39%) are worried about not having enough time to manage the property and over a fifth (29%) are concerned by the level of admin work required.
“Whether you have a second property or are considering purchasing a property to transform into a holiday let, we make holiday lettings stress free and profitable. We also provide advice and property management by a team of local experts, helping you make the most of your investment.”
Original Cottages’ team of local experts work directly with homeowners at every stage of the process to let their property. From advice on converting a property to a holiday let to marketing that drives year-round bookings and even hiring cleaning and maintenance staff once the property is listed, the combination of scale as a national brand, along with the local management teams, ensure homeowners maximise their investment’s profitability.
Source: Ealing Times