Marketing No Comments

Truss to announce stamp duty cut – report

UK housebuilders rallied on Wednesday following a report that Friday’s mini-budget could include a plan to cut stamp duty.

According to The Times, prime minister Liz Truss will announce the move in the mini-budget in an attempt to drive economic growth. It was understood the PM and chancellor Kwasi Kwarteng have been working on the plans for more than a month.

Truss believes that cutting stamp duty will encourage economic growth by allowing more people to move and enabling first-time buyers to get on the property ladder, The Times said.

It cited two Whitehall sources as saying that cuts to stamp duty were the “rabbit” in the mini-budget, which the government is billing as a “growth plan”.

Under the current system, no stamp duty is paid on the first £125,000 of any property purchase. Between £125,001 and £250,000 stamp duty is levied at 2%, £250,001 and £925,000 at 5%, £925,001 and £1.5m at 10% and anything above £1.5m at 12%. For first-time buyers the threshold at which stamp duty is paid is £300,000.

During the pandemic, then chancellor Rishi Sunak lifted the stamp duty threshold to £500,000.

At 0910 BST, Persimmon shares were up 5.4%, while Taylor Wimpey and Barratt were up 4% and Berkeley was 3.5% firmer. On the FTSE 250, Redrow was 5.6% higher, while Bellway and Crest Nicholson were up 3.6% and 3.4%, respectively.

Tom Bill, head of UK residential research at Knight Frank, said: “Nobody can accuse the new government of lacking an economic vision. If its low-tax approach extends to stamp duty, recent history tells us it will trigger higher levels of demand in the housing market at a time when mortgages are getting more expensive, which will support social mobility.

Contact us today to speak with a specialist Holiday Let Broker to discuss how we can assist you

“Prices could move higher in the short term if supply initially struggles to keep up but more balanced conditions will return provided the cut is immediate and permanent.”

Neil Wilson, chief market analyst at Markets.com, referred to the potential stamp duty cut as “the old Tory trick of juicing the housing market in its heartlands to boost confidence (wealth effect) whilst doing not a lot for housing supply”.

“I’m not for concreting over the green belt at all, but there will be questions about the economic soundness of this policy, as there always is. However, with interest rates rising so quickly, an offset to the cost of buying a home would grease the wheels of the market -without higher rates could cause the housing market to seize up.”

He added: “Clearly a stamp duty cut is good news for housebuilders who can expect higher selling prices as a result.”

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, argued that a stamp duty cut could do more harm than good.

“Buyers are unlikely to be unhappy at the prospect of a tax cut, but if the government chooses to cut Stamp Duty in an effort to stimulate the housing market, there’s a risk it could do more harm than good.

Discover our Holiday Let Mortgage Broker services.

“It’s easy to see why the government is concerned about the housing market. We’ve seen demand fall consistently since May, when rocketing bills, rising house prices and ever-increasing interest rates started to take a toll on buyer enthusiasm. There’s a risk that if rate rises accelerate, pressure on buyers could reach a tipping point, where demand dries up.

“We know from very recent experience that a Stamp Duty holiday can stimulate demand. However, the only reason these holidays work is because people feel they have a small window of opportunity to take advantage, otherwise they’ll miss out. The point at which they think they can just wait for the next one, they will start to become less effective.

“Even if it does stimulate demand, it overlooks the fact that the real brake on the property market is a severe shortage of supply. With an average of 36 properties on each agent’s books, we’re still close to an all-time low in the availability of property for sale. Driving demand without addressing supply would risk more buyers chasing a tiny number of properties, which would push prices up.

“By ramping up prices at a time of rising mortgage rates, the end result would be higher monthly mortgage costs, which would be increasingly unaffordable. And the Stamp Duty holiday wouldn’t help on this front. This in itself could be enough to put buyers off, and if it deters enough of them, it could end up having the opposite impact to the one that’s intended.”

By Michele Maatouk

Source: Sharecast

Marketing No Comments

What you need to know before putting your home up as a holiday let

Thousands of Brits are exploring the idea of letting out their homes to holidaymakers or festival-goers this summer but don’t know how to do it. There are legal and tax obligations to be aware of, while other factors such as home insurance, cleanliness and practicalities also need to be considered.

Alok Alstrom, CEO of leading gig economy platform AppJobs, said: “Putting your home to work is often a good way to earn some extra cash, but it’s important to know how to do it safely and legally. For example, the extra income is considered taxable and it is advised to factor this into your finances and potential profit margins.

Contact us today to speak with a specialist Holiday Let Broker to discuss how we can assist you

“Meanwhile, it’s not as simple as just letting someone sleep in your spare room. There are certain standards of cleanliness, privacy and convenience that it’s recommended you adhere to. There is also a risk that things might not turn out as well as you had expected, such as a guest causing damage to your home or overstepping the boundaries.

“Make sure you know exactly what you are letting yourself in for and be confident that you are making the right decision.”

Different laws in different cities

Greater London applies a planning restriction where it is often considered a change of use if you rent out a home, and as such entire home listings in London are limited to 90 days per year unless you have the planning permission to host more frequently.

Planning permission may also be needed in Glasgow and Edinburgh, while Northern Ireland requires a licence from Tourism NI.

Some individual buildings, such as high-rise apartment complexes, can have strict rules and regulations against sublets.

Be careful to check the small print of your lease or contract to make sure you don’t fall foul of your neighbours.

Discover our Holiday Let Mortgage Broker services.

Mortgage and home insurance restrictions

Some mortgages won’t allow subletting, so it’s important to clear it with your mortgage provider to make sure it does not invalidate your policy.

The same goes for home insurance as you might need specific cover. Airbnb has a product called AirCover for Hosts that includes host damage protection and liability insurance.

Safety and emergency contacts

It’s advisable to make sure your guest is aware of what to do in an emergency, such as a fire or break-in, and who to contact. Also make sure they know where the medical supplies are should they be needed.

It’s good to flag any issues with the property that they might need to know, such as a window that doesn’t open or a plug socket that isn’t safe to use.

Being a good neighbour

Some big apartment complexes will have rules on how shared amenities such as gyms, swimming pools and rubbish disposals are used.

Make sure you communicate these rules to your guests to make sure you avoid any conflict.

By Neil Shaw

Source: Kent Live

Marketing No Comments

Research reveals 39% of us don’t check doors are locked before going on holiday

A new study has revealed that more than a third of people don’t check that all of their doors are locked before going on holiday.

Research from Aviva has shown that only 61 percent – or three-fifths – of people check all doors when they go away, and only 58 percent check that windows are closed.

Other safety checks come even further behind, with 57 percent of holidaymakers admitting that they don’t check that sheds and garages are secure, and 81 percent leaving garden furniture out.

As well as this, nine percent of people hide keys under doormats or plant pots, despite the fact that 14 percent of the people surveyed had experienced their home being burgled in the past.

Aviva reports that claims for UK home thefts are 48 percent higher in July to September compared to the rest of the year, with claims averaging a value of £6,000.

The company has offered up its best advice for those planning to go away on holiday this year.

Contact us today to speak with a specialist Holiday Let Broker to discuss how we can assist you

Don’t forget to lock up

Aviva research finds that two-fifths of people don’t check that their doors or windows are locked before they go on holiday.

Don’t advertise your holiday on social media

Before you travel and while you’re away, be mindful that countdown trackers and holiday snaps will let others know you’re not at home.

Leave a key with a trusted neighbour, friend or family member

But give the key to the person to look after – don’t leave under a plant pot or doormat where anyone could find it. Ask your trusted person to check for other internal issues such as water leaks, as well as signs of unwanted guests.

Make your home seem occupied while away

Use timers to switch on lamps and radios to give the impression of someone being at home.

Ask a neighbour to park on your driveway

Again, this suggests that someone is living at the property.

Discover our Holiday Let Mortgage Broker services.

Consider investing in a burglar alarm and security lighting

Both are practical ways to protect your home and can act as a deterrent to burglars.

Mow lawns and trim hedges before you go

An overgrown garden is a giveaway that residents may have gone away.

Lock ladders and tools away

Some burglars will have their own toolkits, but others are more opportunistic, so make sure sheds and outbuildings are locked.

Keep your valuables out of sight

Where possible, keep valuables away from windows. Similarly, don’t store valuables in the bedroom. Thieves know that’s where most people keep their precious items, so hide them in different spots around the home.

Kelly Whittington, Property Claims Director for Aviva UK, commented: “So many people have postponed their breaks because of the pandemic, so summer 2022 is a fantastic time for holidays. But we’d urge people not to get so excited that they forget to carry out checks and leave their homes vulnerable while they’re away.

“A few simple steps can help to deter burglars and keep homes secure – so people aren’t returning to a post-holiday headache.”

By Chloe Shakesby

Source: Farnham Herald

Marketing No Comments

Airbnb is giving more than £8m away so people can design weird and eccentric homes

Airbnb is known for its weird and unusual letting options. From treehouses and converted double-decker buses to medieval castles and mansions.

North Wales has endless rental options for people hoping to visit the area, or those wanting a mini-break to enjoy the incredible options on their doorstep. And now, the company has pledged $10 million (approximately £8.1 million) to people who want to build their own eccentric rental homes.

The funding is part of a project the company has created to make “100 of the craziest and most unique property ideas”, as reported by the Insider. Anyone who wants to apply has until July 22.

Contact us today to speak with a specialist Holiday Let Broker to discuss how we can assist you

Airbnb said it will accept submissions from architects, designers, and everyday people. If successful you could be given $100K (£81.5K) to bring the ideas to life.

Once the project has been completed, it will be rentable on Airbnb’s “OMG!” category. Submissions will be judged by the celebrated architect Koichi Takada, designer and fashion icon Iris Apfel, Airbnb VP of experiential creative product Bruce Vaughn, and Airbnb host Kirstie Wolf.

Discover our Holiday Let Mortgage Broker services.

Brian Chesky, CEO of Airbnb said: “We’re in 100,000 cities. Very few people can think to type in more than 20 places [into a search bar]. So what happens? Everyone ends up going to the same places. Everyone goes to Vegas and Miami and New York and Paris and Rome and London.”

We previously reported on the ‘out of this world’ flying saucer Airbnb. The small campsite in Redberth, near Tenby, is home to some of Wales’ most unique holiday homes – including a jet, a Pacman dome, a UFO spaceship and more.

The rental was deemed so incredible that it even appeared on the Airbnb advert. You can read all about the space here.

We also reported on the six North Wales hotels on the list of UK’s top places to stay in Tripadvisor Travellers’ Choice awards. This saw several places in North Wales make the top 25 lists for the UK. It included five in the resort of Llandudno.

By Jaymelouise Hudspith

Source: Daily Post

Marketing No Comments

Caravan rental firm snapped up by Sykes Holiday Cottages

A static caravan rental website based in Huddersfield has been acquired by Sykes Holiday Cottages. The deal allows private equity-backed Sykes to diversify its range of rental properties.

UKCaravans4hire was established more than ten years ago and connects holiday makers to more than 6,000 holiday homes located across the UK.

Following the acquisition, the business will continue to be run independently by its existing leadership teams but will sit under a newly formed parent company.

Gareth Irving, chief executive and founder of UKcaravans4hire, said: “This deal represents a new chapter for our business and I know with Sykes’ expertise and support we’ll be able to build on the huge success we’ve already had over the past two decades.

“Looking ahead, we’re ideally placed to reap the rewards of growing demand for affordable staycations, working with Sykes to grow our business and promote our holiday homes to a wider audience.”

Contact us today to speak with a specialist Holiday Let Broker to discuss how we can assist you

The deal follows hot on the heels of Sykes’ acquisition of Forest Holidays, owner and operator of environmentally sensitive cabins.

The combined group of businesses under Sykes’ leadership, whose own platform provides access to more than 22,500 holiday homes, are estimated to take more than 2.65 million customers on holiday in 2022. The group employs in excess of 1,700 people and is on track to achieve more than £170m of revenue in 2022

Graham Donoghue, chief executive of Sykes, said: “As the UK’s leading provider of static caravan rentals, UKcaravans4hire is the perfect business to have by our side as we enter into this new market, offering UK holidaymakers an unmatched choice of affordable and high-quality accommodation.

Discover our Holiday Let Mortgage Broker services.

“It’s a transformative time for Sykes as we accelerate our ambitions to become the leading name for UK tourism. We see huge potential in UKcaravans4hire to serve what is currently an underserved market, applying our expertise and market-leading technology to grow the business and catapult it to even greater success.”

Sykes is backed by Vitruvian Partners and was advised by Springboard Corporate Finance, Hill Dickinson LLP and Mayer Brown International LLP on the deal. UKcaravans4hire was advised by Symmetry Corporate Finance.

Source Insider Media

Marketing No Comments

Best places to buy a holiday home in the UK revealed as Wales is named top staycation spot for investors

We reveal top tips for households looking to buy a holiday home to let.

Second home ownership has come under fire but with more and more Britons opting for a staycation, holiday letting has the potential to help local economies and make property owners money, a new report says.

Sykes Holiday Cottages found properties in Blaenau Gwent in South East Wales were some of the most popular while in England Tyne & Wear and Lancashire were prized destinations for holidaymakers.

The Isle of Bute in Scotland was also popular, with Sykes’s Holiday Let Outlook Report also using insights from rental data and analytics company AirDNA.

The holiday let agency, which has over 22,000 homes on its books, said bookings were up 35 per cent compared with 2019 and enquiries from prospective holiday let investors had risen dramatically in 2022.

Contact us today to speak with a specialist Holiday Let Broker to discuss how we can assist you

The pandemic also appeared to have encouraged many people to let out their home to holidaymakers with 25 per cent of owners choosing to start letting their home out 2020.

The report also found that in 2022, compared with 2021, new owner enquiries from prospective holiday home investors had increased by 78 per cent.

With a rise in holidaying at home, Sykes’ report revealed the average holiday let owner earned £28,000 in revenue from their holiday let last year, up from £21,000 in 2019.

It added having access to luxury amenities such as open fires could boost a rental property’s earnings by 19 per cent, while a rise in pet ownership fuelled by the pandemic meant pet-friendly properties brought in one per cent more income on average.

Graham Donoghue, chief executive of Sykes Holiday Cottages, said: “The shift towards staycations had already begun pre-pandemic, Covid has just accelerated this trend.

“Although international travel is becoming easier, we now have new types of staycationers.

“With the UK travel sector flourishing, this will continue to have a positive impact on the economies throughout the country that rely on tourism, particularly in coastal and countryside regions.

“In fact, nine in 10 holiday let owners we surveyed think that tourism strongly benefits the local areas around their holiday homes.”

Discover our Holiday Let Mortgage Broker services.

Where to buy

Seaside towns posted the strongest pandemic house price performance according to estate agent comparison site, GetAgent.co.uk

Its research showed that seaside towns had an average price of £340,339 and had seen the largest annual increase in value at 13 per cent, as well as the largest increase during the pandemic, up by 21.2 per cent.

“We ditched the nine to five to become holiday homeowners“

Adrian and Anita Jennings, 56 and 58, are owners of two holiday lets in Southwest Wales.

The couple own two cottages next to each other in the hamlet of Cwmbach, Kingfisher and Red Kite.

They said: “We left our 9-5 office routines back in 2015, and we haven’t looked back.”

The homes consist of a semidetached annex, formerly a village post office, plus an additional converted outbuilding.

They also have five-acres of woodland garden and we are near to Pembrokeshire, Carmarthenshire and Ceredigion.

The couple bought the original site for £340,000 back in 2015, spending around £25,000 converting it into two holiday lets plus a third property for them.”

Holiday lets – how to invest in one

Matt Kelly said anyone considering buying a holiday let should do their research.

“Even before the pandemic, we were seeing dramatic changes across the buy-to-let landscape with holiday lets steadily increasing in appeal – more so than for traditional long-term rental properties – as they allow people to tap into the UK’s many tourism opportunities.

“This is a trend we expect to continue and we expect the holiday let market to remain fairly stable in the years to come. However, there will discounts out there which may be worth considering, particularly if investors are looking to purchase out of season.

“Buyers may be able to get an even better deal by finding a property which is in a poorer condition and needs restorative or structural work.”

What to consider before investing

For anyone considering a holiday let investment this year, there are a few pros and cons to consider first:

  1. Opportunity for higher rental yields: For landlords, holiday lets had already begun to grow in popularity well before coronavirus, mainly due to the significant tax advantages as they are classed by HMRC as a business (rather than an investment).

Combined with the potential for bigger profit margins and a much higher return per-night, now could be a great time to invest in a furnished holiday cottage and rent it out to paying customers on short-term lets.

With so much demand for staycation destinations this year, landlords and second homeowners (should they wish to let out their property) can relax knowing that this process has become much simpler to manage online.

With the likes of Airbnb and other options helping you get your property listed, you can get yourself set up and ready to welcome your guests with minimal hassle.

Getting a mortgage

For those considering a second home, there may some hurdles to overcome if trying to obtain a mortgage via traditional banks or high street lenders due to the increasingly tough affordability criteria.

For example, lenders will first need to see strong evidence that you will be able to keep up with the mortgage repayments on your second home – especially if you have a mortgage for your current property. Lenders could also refuse an application depending on the location of your holiday home – especially if you’re buying a place in an area that has risk of flooding – like in the Lake District.

Costs involved

Unlike standard buy-to-lets, holiday lets have to be managed for regular visitors and therefore, there may be higher costs, such as paying for a weekly cleaner or managing agents’ fees, so these are things that consumers should consider before making any rushed decisions.

In addition, if you open your home to paying guests you’ll need to be prepared for potential damages and repairs being needed more regularly – especially after weeks of wear and tear following the summer holiday season.

By Samantha Downes

Source: iNews

Marketing No Comments

Holiday home owners raking in cash as staycation demand shows no sign of easing

A staycation boom is expected for the Easter weekend, underlining the investment opportunities from holiday home ownership. Lettings operator Sykes Holiday Cottages has analysed revenue data, alongside house prices, to explore the long-term potential of holiday letting across the UK.

The Holiday Let Outlook Report 2022 also contains consumer research, Sykes’ booking figures and insights from rental data and analytics company AirDNA, to paint a clear picture of the UK’s holiday let market. Blaenau Gwent in South East Wales tops the rankings of the best places in the UK to invest in a holiday let, according to the report.

With house price growth currently at 12 per cent year-on-year, and an average revenue potential of almost £20,000 per year, the area offers excellent long-term potential for anyone looking to invest. Denbighshire and Rhondda Cynon Taf follow closely behind in the new ranking, while the leading areas in England which feature on the list include Tyne & Wear and Lancashire.

Contact us today to speak with a specialist Holiday Let Broker to discuss how we can assist you

Meanwhile, the Isle of Bute in Scotland came in fourth. The easily accessible island was the only area in Scotland to make it into the top 10, but both Fife and Dumfriesshire weren’t far behind. Location and amenities are two of the most important factors in a holiday home’s success, so within the regions listed, any property must also be in a good location and offer desirable facilities to strengthen the investment potential.

According to the poll of holiday home owners, a quarter only started letting during the pandemic, with the staycation boom fuelling a rise in second home owners and investors entering the market. In fact, the sector continues to go from strength to strength, with bookings for Sykes’ holiday lets in 2022 up 35 per cent compared to pre-pandemic levels – a number that is expected to jump even further as we approach the summer months.

The consumer research found that 84 per cent of holiday let owners say bookings for 2022 are stronger than ever, with the same number confident the trend will continue to grow over the next five years. With a rise in holidaying at home, Sykes’ report reveals the average holiday let owner earned £28,000 in revenue from their holiday let last year, up from £21,000 in 2019.

For those weighing up where to invest in the short-term, Cumbria and the Lake District topped the highest-earning holiday hotspots list according to Sykes’ revenue figures, with holiday lets earning an average revenue of £44,000. Devon and Dorset follow closely behind as top-earning regions, with an average annual income of £35,000 and £32,000 respectively, while the Peak District lost its top spot, falling down to fourth place overall.

For those looking to maximise the revenue potential of their holiday lets, Sykes’ analysis found that a hot tub is the leading money-boosting feature they could have – adding an estimated 49 per cent to annual revenue. Income figures also suggest luxury amenities such as open fires could boost earnings by 19 per cent on average, while a rise in pet ownership fuelled by the pandemic has seen pet-friendly properties now earn nine per cent more, on average.

Graham Donoghue, chief executive of Sykes Holiday Cottages, said: “The shift towards staycations had already begun pre-pandemic, Covid has just accelerated this trend. And although international travel is becoming easier, we now have new types of staycationers that are here to stay.

“The figures speak for themselves – bookings so far this year are up 35 per cent compared with 2019 and the average income of a holiday let owner grew by almost the same amount last year versus 2019 – demonstrating the incredible investment potential that holiday letting can bring.

“With the UK travel sector flourishing, this will continue to have a positive impact on the economies throughout the country that rely on tourism, particularly in coastal and countryside regions. In fact, nine in 10 holiday let owners we surveyed think that tourism strongly benefits the local areas around their holiday homes.”

By Brett Gibbons

Source: Wales Online

Discover our Holiday Let Mortgage Broker services.

Marketing No Comments

Dorset is top-earning county for holiday homes

DORSET was the top-earning region for holiday homes in 2021, a holiday lets company has said.

Based on the average income figures for a four-bedroom holiday let, holiday home owners in Dorset earned £36,000 last year – up 50 per cent from 2019, according to new figures published by Sykes Holiday Cottages.

It follows an uplift in demand for UK holiday ‘staycation’ accommodation throughout the pandemic.

Meanwhile the nationwide average income for holiday let owners in 2021 was £28,000 – up 33 per cent from 2019.

Last year, bookings to Sykes’ holiday accommodation throughout Dorset increased, with many Brits shunning foreign holidays due to travel restrictions and ongoing uncertainty.

The Cotswolds and Peak District took second and third place, with holiday home owners earning on average £35,000 and £34,000 in 2021, respectively. Devon and Somerset rounded out the top five.

Contact us today to speak with a specialist Holiday Let Broker to discuss how we can assist you

Bev Dumbleton, chief operating officer at Sykes Holiday Cottages, said: “2021 was certainly the year of the staycation and we saw the strong demand for accommodation across Dorset culminate in record bookings and a significant boost in average yearly income for our owners.

“With the interest in holidays closer to home likely to remain a fixture for years to come, those considering investing in a holiday home in 2022 could see great success – particularly if they choose a location like Dorset which has proven fruitful for those already in the market.

Top-earning regions for holiday homes in 2021 – based on the average annual income of a four-bedroom property, as the median property size.

  1. Dorset – £35,864
  2. The Cotswolds – £35,027
  3. Peak District – £33,833
  4. Devon – £33,071
  5. Somerset – £32,708

Regions with the highest occupancy rates in 2021:

  1. Cumbria & the Lake District – 80.2%
  2. Northumberland – 80.1%
  3. Peak District – 78.6%
  4. Southern Scotland – 78.6%
  5. North York Moors – 78.4%

BY ELLIE MASLIN

Source: Dorset Echo

Discover our Holiday Let Mortgage Broker services.

Marketing No Comments

Holiday home income soars with property owners earning £28k a year on average

An increase in demand for UK accommodation inspired a 33 per cent uplift in the average annual income generated by a holiday home last year.

According to Sykes Holiday Cottages, which analysed its income data, holiday homeowners earned nearly £28,000 annually, on average, per property in 2021 against almost £21,000 in 2019.

Sykes has also revealed the top earning locations for holiday homeowners this year, with Dorset, the Cotswolds and the Peak District taking the top three spots, and Devon and Somerset rounding out the top five.

Based on the average income figures for a four-bedroom holiday let, those in Dorset earn nearly £36,000 per year. And four-bed properties in the Cotswolds and the Peak District generate just over £35,000 and almost £34,000, respectively.

Contact us today to speak with a specialist Holiday Let Broker to discuss how we can assist you

The income uplift can be attributed to a 35 per cent increase in occupancy levels in 2021, compared with 2019, as many Brits shunned foreign holidays due to travel restrictions and ongoing uncertainty.

The Lake District achieved the highest overall occupancy (80 per cent), closely followed by Northumberland, the Peak District, Southern Scotland and the North York Moors, which were all above 78 per cent.

Bev Dumbleton, chief operating officer at Sykes Holiday Cottages, said: “2021 was certainly the year of the staycation, as we saw the strong demand for UK-based accommodation culminate in record occupancy rates and a significant boost in average yearly income.

“With the interest in holidays closer to home likely to remain a fixture for years to come, those considering investing in a holiday home in 2022 could see great success – particularly if they choose a location which has proven fruitful for those already in the market this year.”

By Brett Gibbons

Source: Wales Online

Discover our Holiday Let Mortgage Broker services.

Marketing No Comments

Amount of available holiday-let products up 25%

Mortgage options for borrowers looking at holiday-lets have increased by 25% since September 2021 to 231 options, and trebled since August 2020, according to Moneyfacts.

There are now 27 different brands, two more than in September 2021 and 13 more than in August 2020, the majority of which are currently building societies.

Separate research from Hodge revealed a rise in holiday-let mortgage applications of 173% in 2021 compared to 2020.

According to Moneyfacts, government rules to be introduced in 2023 may impact second homeowners if they cannot meet requirements for letting out a home.

Rachel Springall, finance expert at Moneyfacts, said: “As the desire for a UK vacation rose due to the pandemic, the prospect of earning some extra income through a holiday let has spurred borrowers into action and lenders are catering for this demand.

Contact us today to speak with a specialist Holiday Let Broker to discuss how we can assist you

“If the demand for a UK holiday in 2022 lessens, consumers may still get a reasonable return on any investment, but it’s vital for them to ensure they are offering a let during a bustling season so they do not miss out on a demand spike.

“There may also be the need to fund upfront costs to get a property at a high standard to let, to entice a larger clientele and to stand above the competition.

“Should this be the case, borrowers will need to think carefully about what can make them a unique booking, and this will often depend on their location and the time of year.

“Seeking advice from an independent financial adviser before entering a holiday let arrangement and indeed a listing service is wise, particularly as new small business rates relief rules are to come into play next year.

“The government announced new measures to ensure homeowners letting out a property are not abusing a tax loophole. To qualify for business rates, holiday-lets will need to be rented for a minimum of 70 days a year and available to be rented out for 140 days a year under new rules which are to come into force from April 2023, and evidence will need to be shown.

“The move is geared to protect genuine holiday lets and crack down on others, so it will be interesting to see how this will affect those considering an investment, but are perhaps not quite confident they can meet the new requirements.”

By Jake Carter

Source: Mortgage Introducer

Discover our Holiday Let Mortgage Broker services.