From a commercial perspective, Covid-19 has had devastating effects for many industries in the UK, such as hospitality and travel, which have been severely impacted by lockdown and travel restrictions. However, there have also been some industries that have massively profited from the pandemic.
Aside from the obvious uplift in PPE and pharmaceutical company revenues, tech companies offering remote working software such as Zoom and online shopping companies such as Amazon have enjoyed big profits.
Meanwhile, the property industry has been on a strange journey that not even the top experts could have predicted. The initial anticipation for a house price crash never materialised, with the introduction of stamp duty holidays contributing to an 8% year-on-year house price increase. Some buyers were able to save up to £15,000 in stamp duty, ensuring that the property market has stayed strong throughout the pandemic.
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How property investment has been affected by COVID-19
The pandemic has resulted in a variety of outcomes for different types of property investors. The tenant eviction ban resulted in many buy-to-let landlords losing rental income. The growing house prices have also made it more difficult to make profits from buying property to let it out, but the stamp duty holiday gave buyers a big window of opportunity to add new properties to their portfolio while avoiding paying the usual tax.
Holiday lets have become very lucrative investments
With foreign travel restrictions and health concerns over going abroad, the majority of British holidaymakers have been taking breaks in the UK, rather than missing out on their holidays. Areas such as the Lake District and Cornwall have seen a huge uplift in bookings and searches for accommodation throughout 2021, with some holiday rental companies experiencing more than a 40% increase in summer 2021 bookings.
Domestic holiday experts are predicting that this demand for UK staycations is here to stay, at least for the next 4-5 years, which opens up lucrative investment opportunities in holiday property rentals. As well as taking more bookings, many holiday accommodation owners and companies have increased their prices to maximise the opportunity they now have on their hands.
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Choosing the best holiday accommodation for letting
For people who are interested in cashing in on the UK staycation trend, there are plenty of lucrative opportunities. Which one is best for you will depend on a number of factors including how much capital you have, how soon you want to see the returns and how long you want to be tied to the investment. Another important consideration is how much effort there will be on your part, as some investments allow you to invest and take a back seat, while others will require a great amount of time and input.
Source: Property Investor Today