Marketing No Comments

The weak pound is set to drive demand for UK staycations

As the cost-of-living crisis continues apace, and the value of pound remains low, affordable staycations are back on the agenda with people choosing to holiday near UK tourist hotspots, instead of taking trips abroad. With this in mind, AGO Hotels is looking at what this means for its own business and the wider UK hospitality market.

The latest increase in interest rates is the highest single jump in 33 years. With this at the forefront of minds for the majority of the UK population, affordability has become the focus. Travel, much like most other commodities has substantially risen in price. As a result of the cost-of-living crisis, which is severely impacting household budgets, it is very likely the UK economy / budget hotel sector will see an upsurge in staycation demand. For those opting for a staycation they will be looking for value, balanced with quality and location. Location plays an integral part of the decision-making process and knowing there will be suitable activities and attractions available so the guests can make the most of their holiday.

Hoteliers must now more than ever try to capitalise on any and every opportunity, endeavouring to demonstrate the benefits of their location from the very first time the guest views the hotel online to when they work through the door. This could, arguably should include offers and packages for guests at the local attractions, “stay in our hotel and receive a discount or complimentary entry to local attractions”. Pre-arrival communication with the guests, and again on arrival, if it is relevant, provide guests with information on how they can make the most of their stay. As far as is relevant to the style of hotel, guests will expect the very best stay and in times of economic uncertainty, hoteliers must not lose track of how important a straightforward, positive experience is for guests, achieved through ease of booking, seamless check-in and a top sleep experience.

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

As well as the weak pound having an impact on the movements of UK residents, we are seeing how it is driving change from overseas. There has been a recent increase in tourism as overseas opportunistic travellers are looking to capitalise and take full advantage of the weak pound, which is providing a welcome boost for many hoteliers. Some hotels in key locations are reporting significant increases to their occupancy level and tour operators have been calling Quarter 3 2022, their best trading period for bookings since October 2019. This is particularly true in the case of tourism from the US. The US has always been one of the strongest feeder markets of tourism into the UK and there is every sign this will continue if the costs of flights remain manageable and there is no further disruption at airports as we saw in the early part of summer.

Discover our Holiday Let Mortgage Broker services.

At AGO, we expect to see the benefits of staycations across our entire portfolio. Those hotels closer to attractions and visitor experiences, and in more leisure destinations will clearly have a greater demand, though with the weak pound attracting the foreign guests there will likely be demand from a broader pool of guests. With very competitive room rates we remain committed to providing those wanting a trip away this winter, a cost-effective comfortable option.

While we do try to create growth in occupancy, we must not lose sight of the significant impact caused through the economic crisis the UK is experiencing. This is impacting room rates, and with ever increasing inflation, costs of running the business are higher than ever. The impact of paying higher wages, higher supplier costs and a raft of other increases in costs means the conversion to the bottom line is under significant stress. Remaining profitable and staying open to welcome guests is ever more uncertain. As we move into winter, and the quieter season for the UK hotel market, the coming months will be very telling.

By Lionel Benjamin

Source: Hospitality Net

Marketing No Comments

Let’s hope holiday lets rules don’t go wrong

The short-term lettings market in Scotland is about to undergo a major change in the way it is regulated and operated. New rules, which take effect from this month for new properties entering the market and from April 2023 for existing lets, require landlords to apply for planning permission to operate a holiday let. This permission must be applied for regardless of there being any guarantee of acceptance, which means that substantial fees and legal costs could be incurred without any certainty that the planning application will be accepted.

While many understand that the short-term lettings market has been allowed too much leeway in the way it operates in terms of appropriate safety regulations and the numbers of properties operating in certain areas these changes have the potential to bring the market to a sudden, grinding halt.

In places like Edinburgh and the Highlands, which have the greatest number of holiday lettings in Scotland, the impact will be considerable, this policy could pose substantial problems for local communities.

The risk is that, while reducing the number of holiday lets may produce more long-term residential lettings properties for the community, it will have an impact on the tourism sector which provides local jobs. Reducing the number of available holiday lets also has the potential to reduce the attractiveness of the capital and the Highlands as destinations thereby potentially reducing the number of people employed in the tourism and hospitality sectors. There may be more homes available to rent but there may be fewer jobs for people to do so regulatory changes such as this need to be approached with caution. Every action has a counter action, and the general rule of unforeseen circumstances dictates that you make major changes at your peril.

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

There are already signs that holiday letting landlords are selling up or shifting their properties from the short-term market to long-term. These landlords say that the requirements for planning acceptance are not transparent enough. It is not clear what planning permission is being sought and the delays in processing applications (at least nine months in the Highlands) means that the next holiday season would need to be written off. Finally, the costs of submitting an application with no guarantee that it will comply with the rules and be accepted make continuing in the market untenable for many landlords.

The result will be a loss of many thousands of holiday homes into the long-term market or for sale on the open market. This potential increase in the number of properties in the private rented sector is to be welcome, particularly in cities like Edinburgh where demand is higher than anyone has ever experienced before. But if it is accompanied by a downturn in the tourist market next year then many of those people who may have found a home may subsequently be unable to find a job.

Discover our Holiday Let Mortgage Broker services.

The issue with these changes is the vagueness of the regulation and the rapidity of its introduction. No landlord is going to be able to afford to lose an entire season of holiday lets so the delay in processing these is a key issue in forcing these properties out of the market.

Equally, a planning permission measure which restricts properties without a main door entrance is clearly targeted at Edinburgh which, like most Scottish cities, is largely comprised of tenements. Given that one of the key issues last year during the Edinburgh Festival was the cost of accommodation it is unlikely this will be improved by dramatically decreasing the stock available.

As ever with legislative and regulatory changes there will be consequences for the market, and it is unlikely that these will occur in the way which the politicians expected. The issue, as ever, is supply and demand. If you restrict supply prices will rise, if you increase supply prices will fall. We shall see what happens next summer, but I think that record prices for holiday lettings will be the order of the day in Edinburgh and elsewhere.

By David Alexander

Source: Scotsman

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

Holiday let mortgage enquiries remain strong post-pandemic

The holiday let mortgage market has remained popular with investors since the easing of Covid-19 lockdown restrictions, according to a new poll conducted by Hampshire Trust Bank.

Over half (55%) of broker respondents said they had written a holiday let case over the past 12 months.

84% of respondents said they had received more holiday let enquiries since the onset of the pandemic in 2020 and 48% had even seen more enquiries since restrictions were lifted earlier in the year.

In addition, brokers were asked what the most popular regions in the UK for holiday let enquiries were over the past 12 months. For 54% or respondents, the South West of England was the most popular location, followed by Cumbria and the Lake District (26%), the South Coast (23%) and East Anglia (14%).

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

Louisa Sedgwick, managing director of specialist mortgages at Hampshire Trust Bank, commented:

“These findings show there is still significant demand for holiday let mortgages. The staycation boom we witnessed during the pandemic shows little sign of abating in the short-term.

“The fact that almost half of brokers taking part in the webinar have seen an increase in enquires since Covid restrictions were lifted clearly indicates the strength of demand for holiday let mortgages in the UK.”

Discover our Holiday Let Mortgage Broker services.

By ROZI JONES

Source: Financial Reporter

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

Hodge returns to residential loans market

Hodge has reentered the residential mortgage market for its 50-plus, retirement interest-only and holiday let mortgages, after a short break from new business.

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

The bank says that after experiencing “record volumes of business” it had “made the call to close to new applications for a two-week period to restore its levels of service”.

But now says that from today, 4 July, “new applications for all products are now open again, with service level agreements back to 48 hours with other service guarantees to intermediary partners available again too”.

Hodge mortgages business development director Emma Graham says: “We pride ourselves on both our service and the fact that our underwriters assess applications on a case-by-case basis.

Discover our Holiday Let Mortgage Broker services.

“We remain fully committed to maintaining a personal approach but will continue to invest in technology to provide additional levels of automation while ensuring we’re able to offer the services our brokers have come to expect.”

The bank, which runs a savings department, says that products available through its commercial lending division remain unaffected, with this announcement only relating to personal mortgage loans.

Last month, Hodge appointed Stuart Benge as senior business development manager for commercial lending.

Benge joins Hodge with more than 25 years of finance sector experience, having previously worked with N&P Commercial and Assetz Capital, among others.

In his new role, he will be responsible for expanding Hodge’s presence in the investment property sector on a national scale.

By Roger Baird

Source: Mortgage Finance Gazette

Marketing No Comments

UK staycations: English wine becomes a sparkling attraction for tourists as quality of product improves

UK staycations: As English wines become ever more popular and highly regarded, an increasing number of hoteliers are growing their own grapes to show guests and the rest of the world the quality on offer this side of the Channel.

Celebrity chef Michael Caines is bottling the first wines grown in the vineyard he planted four years ago in the grounds of his upmarket Lympstone Manor hotel, in East Devon.

Mr Caines said the vineyard was “always going to be a focus for the hotel given its southwest-facing parkland overlooking the Exe estuary”.

In 2018, he planted 17,500 vines, growing Pinot Noir, Pinot Meunier, and Chardonnay grapes with the aim of making “some of the finest English sparkling wine in Devon”.

However, the first wine to be bottled will be a red, “the quality of which even surprised us”, he said.

In 2020, the first harvest took place, and with the help of the Lyme Bay Winery, two wines were produced, a standalone Pinot Noir and a traditional English sparkling wine, which remains only part way through the winemaking process.

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

The Pinot Noir is being launched this month ahead of the sparkling wine’s launch next year. With a nod to the ancient stretch of coastline on which the vineyard has been created, the Pinot Noir carries the name Triassic.

“I feel an immense sense of pride as well as extreme gratitude for the support we have received since we opened our doors five years ago,” said Mr Caines, who has also just launched the new pool house at Lympstone Manor.

“I set out to create somewhere very special, that combines exceptional luxury with ultimate comfort, where people can come to relax, unwind and be looked after.

“The past two years have been particularly challenging for everyone, hopefully we are now emerging to brighter days.”

Lympstone Manor is not the only hotel to have capitalised on the growing clamour for English wines. There are plenty of hoteliers hoping to create their own vintages.

Discover our Holiday Let Mortgage Broker services.

At the upper end of the price range, alongside Lympstone Manor, is Black Chalk Vineyard in Hampshire. It also sits next to water, and offers treehouses dotted throughout its woodland, from which guests can sample its award-winning sparkling wine.

One of the oldest vineyards in the UK is Three Choirs in Gloucestershire. Visitors cans even sleep among the vines on the 75-acre estate in a luxury lodge. Its wines have won a string of awards, and are suitable for both vegetarians and vegans.

While the south of England, especially the south-east, is the traditional hotbed for English vineyards, Ryedale bucks that trend and is the northern most location producing wines in the country.

Sitting at the foot of the Yorkshire Wolds and close to the market town of Malton in North Yorkshire, Ryedale produces red, white, rosè and sparkling wines across just six acres. Visitors can also relax after an evening sampling the produce in one of two en-suite rooms in the farmhouse.

By David Parsley

Source: iNews

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

Lancashire is holiday cottage investment hotspot in staycation boom

Lancashire is one of the top areas in England to invest in a holiday home for staycations, particularly Lytham, Morecambe and Clitheroe.

With house price growth currently at 7% year on year, and an average annual rental income of nearly £23,000, the county offers excellent long-term potential for anyone looking to invest – particularly in popular tourist spots such as Lytham, Morecambe and Clitheroe.

Lancashire ranks second on Sykes Holiday Cottages’ list of top investment hotspots in England, behind only Tyne & Wear, with Shropshire rounding out the top three.

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

Looking at the UK overall, Lancashire ranks in ninth behind destinations throughout North and South Wales. Blaenau Gwent in South East Wales topped the list, followed by Denbighshire and Rhondda Cynon Taf.

The Holiday Let Outlook Report 2022 analyses Sykes’ revenue data, alongside current house prices and house price growth, to drill into the long-term investment opportunities within holiday letting across the UK.

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.

Discover our Holiday Let Mortgage Broker services.

The report 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.

According to the poll of UK holiday home owners commissioned for the report, a quarter (25%) only started letting during the pandemic, with the staycation boom fuelling a rise in people entering the market – including investors, as well as those renting a second home already owned, setting up glamping accommodation or transforming part of their home.

In fact, bookings for Sykes’ holiday lets in 2022 are up 35% compared to pre-pandemic levels – with bookings to Lancashire 76% higher this year than in 2019.

Graham Donoghue, CEO, 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.

“Because of growing demand for breaks to Lancashire and rising house prices, there has perhaps never been a better time to invest. There are monetary benefits to entering the market, but by holiday letting you’re also helping others experience and enjoy your own part of the world while supporting the local tourism economy.”

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 to install – adding an estimated 49% to annual revenue.

Income figures also suggest luxury amenities such as open fires could boost earnings by 19%, on average, while a rise in pet ownership fuelled by the pandemic has seen pet-friendly properties earn 9% more.

By Nicola Adam

Source: Lancashire Post

Marketing No Comments

Which locations top the list of holiday-let hotspots?

In a ranking of the best places in the UK to invest in a holiday let, Blaenau Gwent in South East Wales tops the list, according to a new report from Sykes Holiday Cottages.

With house price growth currently at 12% year on year, and an average revenue potential of almost £20,000 per year, the county borough 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.

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 ten, but both Fife and Dumfriesshire weren’t far behind.

The Holiday Let Outlook Report 2022 analyses Sykes Holiday Cottages’ revenue data, alongside current house prices and house price growth, to drill into the long-term investment potential of holiday letting across the UK.

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

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.

The report 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.

According to the poll of UK holiday homeowners commissioned for the report, 25% only started letting during the pandemic, with the staycation boom fuelling a rise in second homeowners 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% 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% 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.

Discover our Holiday Let Mortgage Broker services.

The report also highlights that, compared to the same period in 2021, Sykes has seen new owner enquiries from prospective holiday home investors almost double, increasing by 78% in 2022.

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% to annual revenue.

Income figures also suggest luxury amenities such as open fires could boost earnings by 19% on average, while a rise in pet ownership fuelled by the pandemic has seen pet-friendly properties now earn 9% more, on average.

Graham Donoghue, chief executive officer of Sykes Holiday Cottages, comments: “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% 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.”

He adds: “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.”

Sykes’ top 10 picks for staycation accommodation investments in 2022 and beyond: 

LocationAverage house price & house price growthAverage gross annual holiday let income (for all property sizes)
Blaenau Gwent£129,847 (+12% YoY)£19,611
Denbighshire£210,805 (+14% YoY)£23,724
Rhondda Cynon Taf£156,396 (+12% YoY)£18,528
Bute£159,479 (+12% YoY)£16,373
Conwy county£229,555 (+11% YoY)£20,957
Gwynedd£232,306 (+20% YoY)£19,611
Carmarthenshire£197,546 (+13% YoY)£16,900
Tyne & Wear£231,867 (+29% YoY)£18,764
Lancashire£198,824 (+7% YoY)£22,931
Swansea county£185,488  (+8% YoY)£18,107

By Deborah Lewis

Source: Property Investor Today