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Shropshire is a bit off the radar but it’s every bit as impressive as the more famous Lake District or Yorkshire Dales and far less crowded for an enjoyable break.

“Where exactly is Shropshire?” was the blanket response I got when telling people about my staycation. Their reactions surprised me, although I have to admit I knew little about the county other than its vague geography.

With Wales to the west and Birmingham about an hour’s drive east, it’s not like Shropshire is in the middle of nowhere.

It hasn’t got its name in lights like the Lake District or the Yorkshire Dales but, as I found, it doesn’t mean it’s any less impressive.

Driving through the undulating hills of the Shropshire countryside, I was taken aback at how stunning the landscape is. Why don’t more people talk about this place, I wondered.

But secretly I was glad it’s a bit off the radar. It meant we weren’t fighting through crowds like in some of the better known tourist areas.

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On one walk – a 6.8-mile trek to Linley Beeches – we didn’t see a single person. Just a few cows and sheep for company. That ramble took us to a mile-long double row of ancient beech trees at Linley Hill, standing to attention like a line of soldiers. These are some of the county’s most iconic treescapes.

Shropshire is a walker’s paradise so off we went – me, my husband Ben and our six-month-old Asa strapped to him.

Next we tackled Caer Caradoc hill. A word of advice – don’t let the word “hill” fool you. It felt like a mountain in places for us novice ramblers.

Caer Caradoc overlooks the market town of Church Stretton which has an abundance of cafes, antique shops and independent traders. If walking up hills isn’t your thing you can enjoy pounding the pavements here instead.

As soon as you enter Berry’s – an award-winning coffee house set within the ground floor of a Queen Anne townhouse – you’re met by a counter of delicious looking cakes. But I ordered scrambled eggs and smoked salmon to power me up those hills.

This area is an excellent base for holidaymakers, especially hikers, horse riders, mountain bikers and nature-lovers.

Our home-from-home for the week was The Dovecote, built over an 18th century coach house, and booked through Sykes Cottages, just down the road in the village of Wistanstow.

Surrounded by the fields of the Shropshire Hills, an Area of Outstanding Natural Beauty, it offers the ultimate setting for a romantic retreat for two (plus baby).

After upping our step count, the welcoming cottage also provided the perfect antidote – a hot tub.

Inside is an open-plan living space. With high ceilings and a magnificent inglenook fireplace with woodburning stove, it’s the ideal space to relax.

Contemporary furnishings perfectly complement the character and charm of the property’s exposed brickwork and original beams. Sympathetically restored, all of the ironwork in the cottage is either original or handmade by the local blacksmith.

On the first floor is a chic master bedroom with king-size bed and roll-top bath with handheld shower, as well as an en-suite shower room.

Outside, a pretty garden surrounds the hot tub, which is where we spent every night with a glass of wine after putting the baby to bed.

Owners Julie and Wayne go the extra mile with thoughtful touches for their guests. We arrived to find a box of indulgent doughnuts waiting for us – just what we needed after a long drive – as well as a pint of milk.

They’d also set up a travel cot at the end of the bed for our little one.

When we prised ourselves out of the hot tub we explored more of the surrounding countryside, including the National Trust’s Long Mynd, with its stunning heather-clad plateau.

We also visited nearby Ludlow for the day. Only a 15-minute train ride or drive south, this thriving medieval market town has gorgeous architecture as well as Michelin star restaurants and its very own castle.

We enjoyed Sunday lunch at Ye Olde Bull Ring Tavern, a characterful pub dating back to the 14th century.

The town of Craven Arms was a two-mile walk away from our cottage and has a well-stocked country supermarket.

And within stumbling distance of our holiday home was the Plough Inn, just a five-minute stroll down the road.

But there was plenty to keep us occupied at The Dovecote, with a Smart TV with Freeview and access to Amazon and Netflix, as well as wi-fi and a Sonos music system.

A starter pack for the woodburning stove was provided and a pizza oven is available on request.

So now I’ve told you all about the delights of secret Shropshire, do pass it on. But maybe not to too many people…

By Janine Yaqoob

Source: Mirror

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Holiday let mortgages continue to grow in availability with the number of mortgage deals available tripling since 2020, according to Moneyfacts. This figure is also up by a quarter since September 2021, showing the rapid growth that is still happening in this sector of the UK mortgage market. With this increase in the availability of holiday let mortgages, investor confidence is also growing with Hodge Bank reporting a rise of 173% in holiday let mortgage applications.

The growing numbers interested in UK holidays or ‘staycations’ are likely responsible for the rise in holiday let mortgage options as holiday let properties become increasingly popular among UK expat and foreign national investors responding to the surging demand for this type of let.

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Holiday Lets an Excellent Option for UK Expat and Foreign National Investors

‘One good reason to choose a holiday let over a more traditional buy-to-let property is that a holiday let could be more profitable than a long-term let’ says Stuart Marshall. ‘Holiday lets can command higher prices – so much so that a week of renting a holiday let can earn as much as a month of renting a long-term let. This means that the national average rental yield for a holiday let is predicted to rise to 14% by 2022. Meanwhile, the average rental yield for a long-term let is 4.77%, with even the highest current average rental yield standing at 6.92% (Newcastle). This puts in perspective just how profitable a holiday let can be when purchased using a UK expat or foreign national holiday let mortgage.’

‘Further, there are some great tax benefits to be had from a holiday let property. The most obvious of these is the ability to claim mortgage interest tax relief which is now denied to most landlords. Further, any running expenses (such as bills, maintenance costs and the replacement of furniture) can also be claimed as tax expenses and the property will often be eligible for business rates instead of council tax. Of course, the property must also satisfy some rules to reap the maximum benefits. For example, new rules surrounding holiday lets require the property to be rented out for a minimum of 70 days a year and available to let for 140 days a year in order to be eligible for small business rates relief. However, with the right property in the right area, this shouldn’t be hard to achieve.’

Holiday Let Hotspots in the UK

For UK expat and foreign national investors looking to invest with a UK holiday let mortgage, there is a wide range of choice available for where to buy. There were a number of holiday let hotspots where prices have jumped dramatically in the past 12 months and these areas will likely be areas on interest when it comes to consumer demand. Therefore, investors who buy in these areas increase their chances of reaping strong returns and making sure that their property is let for as many days as possible.

Cornwall.
Amongst the most popular locations for UK holidaymakers and holiday let investors is Cornwall. Home to some of the most incredible landscapes in the UK, Cornwall is a constant draw for those looking for a staycation. Consequently, Cornwall is also an incredibly popular destination for investors utilising UK expat and foreign national holiday let mortgages.

Padstow has always been a popular town for UK holidaymakers, famous for its concentration of fantastic restaurants and as a retreat for those with second homes, which also contribute to the high prices in the area. Cornwall is, by far, one of the most expensive locations for investing using a holiday-let mortgage, with the average asking price in Padstow sitting at £658,588 according to Rightmove – a 20% increase in price in the last 12 months.

A slightly more affordable location to invest in using a UK expat or foreign national holiday let mortgage is St. Ives. St. Ives, like much of Cornwall, is home to some stunning beaches but has a uniquely stylish town to boast too. The average asking price in St. Ives is significantly lower than in Padstow –£473,161 compared to £658,588. While this is still expensive by the standards of many other holiday let hotspots and traditional buy-to-lets, there is a great variance in price. Though a two-bed cottage will often cost in the region of £450,000, flats often skew far cheaper with a one bed available for around £200,000.

Cheaper still is Newquay, where the average asking price has increased 13% in the last twelve months to £317,846. Newquay boasts 12 incredible beaches and a vibrant nightlife scene which is sure to appeal to tourists young and old. It’s also an incredibly popular spot for surf enthusiasts. Because of a massive boom in development, Newquay has great stock availability which contributes to the lower prices seen here compared to other areas in Cornwall.

According to data from Airdna, the average annual revenue for a holiday home in Cornwall is £33,594. Using this average along with the average asking prices for Padstow, St.Ives and Newquay, we can calculate annual rental yields of 5.1%, 7.1% and 10.6% respectively. Obviously, this amount will vary greatly depending on the type of property, the actual cost of the property, and the occupancy rate. However, using averages is a good way to estimate a guide figure for the rental yield.

North Yorkshire.
A far more affordable area than Cornwall is North Yorkshire, which has become an incredibly popular destination for staycations. One area that has seen astonishing growth in the last year is Whitby, where asking prices have increased by an astonishing 17%. This brings the average asking price of a property in Whitby to £254,218 – significantly lower than the Cornish competition. Despite this lower asking price, the typical average occupancy rate for a property in Whitby is 70% and average nightly rates are £128 a night. Using these figures gives us an average annual revenue of £32,704 which would put the average rental yield for Whitby at 12.9%.

Not far from Whitby is Filey, a fishing village home to a five mile stretch of sandy beach. Here, prices increased by 13% in the last year. However, the average asking price for a property in Filey is still far more affordable than much of the competition, making it incredibly accessible for those utilising the excellent UK expat and foreign national holiday let mortgage deals available at the moment.

With the popularity of holiday lets continuing to increase and properties getting booked up sometimes years in advance, holidaymakers are looking toward the hidden gems in the UK holiday market – and, at the current prices, Filey could well be the perfect hidden gem location.

Wales.
Wales is another region that is home to excellent options for those using a UK expat and foreign national holiday let mortgage. Areas like Porthcawl have increased by 14% to an average asking price of £307,051. Using Airdna’s figures again, we can estimate the average rental yield for this area to be around 12.8%.

Pwllheli similarly increased in asking price by 13% but to a much lower figure of £222,607. This presents excellent investment opportunities for an area with the draw of two Blue Flag beaches, a marina, golf course and a sailing club. It is also incredibly close to Snowdonia National Park. Using the same source and calculation as the previous areas we have examined, this would give an average rental yield of 15.1%.

The strength of holiday lets in Wales is evident in the fact that Wales has seen the biggest regional increase in the number of holiday let companies that have been established in the last year – up by 131%.

By Ulysses

Source: Ein News

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There is reported to have been a ‘staycation boom’ in the UK during the pandemic. This would make sense; after all, international travel has been fraught with additional complexity and cost, if not being rendered completely impossible for long periods over the past two years.

Indeed, it was recently reported that 39% of Britons would be more inclined to holiday in the UK post-pandemic. But the appetite for staycations was already well established before we had ever heard of Covid-19. A quick glance back to 2019 reveals that while 93 million Britons jetted overseas, whilst 123 million chose to holiday in the UK, suggesting that the ‘boom’ is simply an uptick in a stable domestic tourism industry – one that is worth over £1.6 trillion.

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The strength of this industry, which is expected to grow further, has naturally impacted the property investment sector. Namely, more investors – particularly buy-to-let investors – are now considering holiday lets as a means of diversifying their portfolios. For those who fall into this camp, it is important to first understand the suitability of investing in holiday lets, including both the potential pitfalls and benefits that such an investment entails.

Reasons to be wary
Profitability – landlords acquiring a new property that they intend to use as a holiday let are likely to have paid an inflated price. Location is a very important factor in the success of a holiday let, and increased tourism in the last two years have pushed property prices up in tourist hotspots. Further, many properties will need furnishing and renovation to qualify as a holiday let. So, an initial outlay is common before income from holidaymakers starts to filter through; this could pose a potential barrier to some investors.

Running costs – with the cost of cleaning, energy and maintenance falling under the landlord’s remit, the regular turnover of guests creates some significant outgoing costs that can limit the money made on a property. Investors should also be aware that letting agents can charge between 20-30%, a necessary cost if they would prefer not to carry out the day-to-day management of the property. All these costs will eat into an investor’s yield.

Lack of guests – unfortunately, the old adage ‘build it and they will come’ is not a guarantee in the holiday let market. Despite sites like Airbnb creating easier platforms to market holiday lets, it is unlikely that properties will ever be at full capacity all year round. As holiday lets must be let for a minimum of 105 days to earn their potential tax benefits (more on this below), failure to attract guests could be disastrous to a property’s profitability.

Threat of regulation – with London capping short-term lets to just 90 nights a year unless planning permission is acquired, regulation in the holiday let industry is likely to increase. Areas like Cornwall and Bournemouth have seen incidents of ‘over-tourism’, and local councils may bring further regulation in to compensate.

Difficulty in finding finance – the relative insecurity of short-term lets makes borrowing from high street lenders difficult. As such, landlords could look for alternative financial backers. In doing so, lenders who underwrite on a case-by-case basis are essential to securing the best deal. Despite high-interest rates, variable discount rates and large down payments, investors and their brokers could consider their financial options as they hunt for the property itself in order to secure a deal that is most beneficial to their needs.

The benefits to be had
Those are the challenges, of which there are plenty. But that ought not to overshadow the potential upsides – again, there are numerous.

As many experts suggest, investment in different markets can maximise returns as each asset will react differently to market fluctuations. While it certainly does not guarantee against loss, diversification can reduce risk. The potential benefits listed below reflect why many landlords regard holiday lets as an increasingly interesting way to diversify their portfolios.

Tax benefits – if a property qualifies as a Furnished Holiday Let (as defined by HMRC), landlords are able to claim Small Business Rate Relief, thus avoiding council tax or business rates on their property and increasing the potential for profit. Furthermore, landlords can offset energy, cleaning and maintenance bills against their profits, reducing their tax bill further. If they choose to sell, they can even claim some capital gains reliefs, increasing the value of a holiday let as an asset.

Yields – as a result of these tax reliefs, and a rental price increase of 41% since 2020, holiday lets can make 30% more yield than a BTL property. With most aiming for a return of 8% annually and an average profit target of 30% (rising to 50% on properties without mortgages and letting fees), holiday lets begin to look like a credible alternative to an established portfolio.

Holiday home – the potential benefit that might have intrigued landlords the most during the pandemic is the opportunity to use a holiday let as a personal holiday home. To qualify for tax reliefs, holiday lets must be available to let for at least 210 days leaving landlords 22 weeks a year to use it themselves if they choose. With restrictions on international travel and a working from home order in place, the option to travel to a second home for free makes a holiday let an even more intriguing alternative to landlords.

Final thoughts
As restrictions ease and international travel continues its revival, it will be fascinating to see whether staycations remain as prominent, both in the media and with holidaymakers. For landlords considering a holiday let, they should weigh up whether they are capable of navigating the various pitfalls of the market. Those who are successful could certainly start to reap the attractive benefits a holiday let has to offer.

By Paresh Raja

Source: Finance Monthly

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More Britons than ever are looking to holiday at home during the upcoming half-term break with bookings soaring for UK destinations.

Figures from holiday home rental agency Sykes Holiday Cottages revealed bookings for February half-term are up 27% versus 2020, with the number of people booking staycations surpassing pre-pandemic levels.

Meanwhile, bookings so far this year are up 22% compared to the same point in 2020, while there has been a 158% increase in bookings compared to the same period last year.

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In particular, Britons are booking staycations in Whitby, Ambleside and Bowness-on-Windermere, with these three locations witnessing the greatest volume of bookings for 2022.

Meanwhile, in a survey of 1,000 UK guests, Sykes found that 55% of British holidaymakers say they will still opt for UK staycations even when all international travel restrictions have lifted.

On average Brits are planning to take two staycations in the next 12 months, with almost half (46%) saying limiting their environmental impact is a key consideration when choosing a UK break over foreign travel.

Other factors for opting to holiday closer to home include the ease and convenience (52%) and getting to enjoy the outdoors (72%).

Graham Donoghue, chief executive at Sykes Holiday Cottages, said: “Bookings for our holiday lets this year are through the roof, showing that the staycation boom is here to stay.

“While bookings for February half-term have been record-breaking, we expect Easter and summer to be no different, and bookings are already coming in for autumn and winter thick and fast.

“Brits are looking to make the most of what our beautiful country has to offer and the self-catered option still appears to be a popular choice as contact with others can be limited.

“Clearly environmental considerations are also playing a role in the decision to staycation too. This is something we were starting to observe before the pandemic but it has really taken off over the last two years.”

By Brett Gibbons

Source: Wales Online

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