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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.

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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

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Holidaymakers planning trips to Scotland as staycation boom to continue

More than half of holidaymakers said they are likely to plan a trip in Scotland this year as staycations continue to boom, a new survey found.

Around 53 per cent of Scots planning holidays said they intended to take one in their own country, while 44 per cent are heading to England for a break.

In 2021, more than 60 per cent of domestic trips in Scotland were taken by Scots residents.

And tourism bosses said it is ‘fantastic to see this interest continue in 2022’ – despite the relaxation of international restrictions.

The Highlands are the most popular destination of choice anywhere for people in their 40s and 50s, the findings suggest.

Some 60 per cent planning a holiday are hoping to jet off abroad.

Spain, the United States, France, Greece, Italy and Turkey are among the most popular destinations outwith the UK, a survey found.

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Around 1,000 people were surveyed this month, with more than a quarter of those planning a holiday plotting a trip over Easter.

Some 40 per cent suggested May or June for a trip, while 45 per cent mentioned July or August as their preferred choice.

London was second only to the Highlands as the most popular destination in the UK.

Jim Eccleston, managing partner at market research firm 56 Degree Insight, said: “These results provide some cautious grounds for optimism for Scotland’s tourism industry as it prepares for what remains another uncertain year.

“It’s encouraging that holidays are back on the agenda for many Scots, with three in five actively considering where to take them this year.

“However, this still represents a dampening on pre-pandemic volumes when closer to four in five would be hoping to take a holiday.

“For the outbound industry, there’s also some cause for some optimism, with international destinations back on the agenda for many again.”

Chris Greenwood, senior tourism insight manager at VisitScotland, said: “Scotland has always been a popular holiday destination for Scots even before the pandemic.

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“However, the last two years have sparked renewed interest with many people discovering the joy of a holiday at home.

“In 2021, more than 60 per cent of domestic trips in Scotland were taken by Scots residents and it is fantastic to see this interest continue in 2022, despite the relaxation of international restrictions.

“Research is showing that visitors are exploring beyond the traditional Highland hotspots into other areas such as Dundee, Angus and the south of Scotland.”

Marc Crothall, chief executive of the Scottish Tourism Alliance, which represents more than 250 different businesses and organisations, said: “The results of the research will offer a significant degree of optimism for Scotland’s tourism businesses.

“It has been an unimaginably difficult two years for our industry and this is starting to feel like the level of normality that we’ve all been so desperate to regain.

“It’s heartening to see that after two years of living with different levels of restrictions around international travel, Scotland remains the preferred choice for more than half of those surveyed who indicated that they would be taking a holiday this year.

“The UK domestic market accounts for around 70 per cent of tourism in Scotland and our industry will always be dependent on this spend.

“However, the return of the international market will be the game changer this year, particularly for the sectors which are so reliant on international visitors and have suffered the worst.”

By Jennifer Russell

Source: Daily Record

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UK staycations expected to boom again this year

New data points toward staycations remaining a popular holiday choice for Brits this year. Outdoor World Direct has reported an ‘unseasonably buoyant start to the year’ has received double the amount of orders expected for the month so far in January 2022.

January is typically classed as low season in the camping industry, however, the business has handled orders in quantities akin to May, which is unheard of.

Family tents and awnings have been the most in-demand products so far, with sales 100% higher than figures in January 2021, indicating a healthy appetite for staycation holiday parks and camping holidays again this summer. Last year saw campsites overwhelmed by bookings and camping equipment retailers struggled to keep up with demand, particularly as supply chain issues meant most of the anticipated stock didn’t arrive in time for the summer season.

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Despite the supply chain issues Outdoor World Direct faced last summer, tent and awning sales were twice as high as a regular calendar year thanks to many Brits opting for a staycation.

David Scotland, owner of Outdoor World Direct, believes there are multiple factors at play reviving the ‘great British camping holiday’ for the second year running, including ongoing uncertainty around international travel and a new generation of campers born out of the pandemic.

“Uncertainty around other countries’ restrictions is still a huge factor as families want something they can look forward to that is less likely to be cancelled or rescheduled,” says David Scotland, “anecdotally, many customers who are aspiring to go abroad this summer are also planning a second or ‘back up’ holiday in the UK. At this moment in time, it is difficult to gauge how long these factors will continue to affect the industry, with rules changing all the time.

However, it’s not just holidaymakers stuck for options that are driving the trend. “We’re also experiencing high demand from families looking to replace cheap kit,” says David, “many tried camping for the first-time last summer, enjoyed it more than anticipated and are now upgrading their equipment to invest in an even better experience this year.”

In addition to first time campers (and banana bread bakers), some used the pandemic as an opportunity to invest in a campervan or caravan. Google Trends data revealed searches in the UK for ‘campervan’ and ‘caravan’ were higher in the summers of 2020 and 2021 than previous years, which explains Outdoor World Direct’s increased demand for awnings.

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Although a positive start to the year is welcome for the travel industry, David Scotland warns those planning to buy new camping equipment need to do so as soon as possible as ongoing supply chain issues continue to plague the industry.

“It’s an incredibly challenging situation,” says David, “last year we experienced the highest demand of our 23 years of trading, yet we had large amounts of stock ordered for the 2021 season arrive too late for summer. We’re still receiving some of the orders due over a year ago but we know that stock is going to be a huge industry-wide issue again this year due to a myriad of challenges in the far east. The cost of shipping containers is extortionate and disruption to global production caused by lockdowns and material shortages are impacting the whole consumer goods industry. If you know you need a tent, awning or any other camping equipment for the summer, I’d buy it sooner rather than later. We’re also seeing price increases of 20% going forward into 2022 and 2023. It may well be advantageous for consumers to pick up a product before these price inflations come into force.”

By Kristin Mariano

Source: Travel Daily

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Lenders catering for staycation BTL demand

Consumers looking to take out a holiday let loan to satisfy a rise in demand for UK holidays will find a notable rise in product choice since 2020. According to analysis by Moneyfacts.co.uk, there are now more than 200 deals available in this niche arena, treble that of August 2020 and a rise of 25% since September 2021.

Mortgage options for borrowers looking at holiday lets have increased by 25% since September 2021, and trebled since August 2020. There are now 231 options available.

More lenders have joined the market. 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.

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Government rules to be introduced in 2023 may impact second homeowners if they cannot meet the requirements for letting out a home.

Buy-to-let mortgage market analysis
BTL options available
(fixed and variable)
Mar-20Aug-20Apr-21Sep-21Jan-22
Available to holiday let16274149186231
Lenders offering holiday let deals2014212527
Average fixed rate available to holiday let3.37%3.53%3.95%4.14%3.92%
Source: Moneyfacts.co.uk

Rachel Springall, Finance Expert at Moneyfacts.co.uk, 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. There are now more than 200 options available for borrowers comparing buy-to-let deals designed for holiday let, and 27 lenders are on board, many of which are building societies. While the rise in choice is positive, the market is still relatively niche but could grow further with demand.

“Whether such buoyant activity in the holiday let market will remain is unknown but, encouragingly, research from Hodge revealed a 173% rise in mortgage applications for holiday let in 2021 compared to the previous year. 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.”

Source: Property118

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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.

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“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

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Brits are still choosing staycations over holidays abroad this winter

More Brits are choosing to holiday in the UK rather than heading off in search of some winter sun, continuing the staycation trend that has become popular during the pandemic.

A study of over 2,000 people found that despite the chilly temperatures, 13 per cent of Brits were planning to holiday closer to home this winter, compared with nine per cent planning to go abroad.

It’s a trend that looks set to continue, with the research by car finance provider Volkswagen Financial Services (VWFS) indicating that 24 per cent were planning a domestic road trip in the next few months, compared with 20 per cent who hoped to head to sunnier climes.

Since the pandemic began, the rise of the staycation has been dramatic, with prices of camper vans going through the roof as Brits looked for other ways to take a break with foreign travel restricted.

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Since the summer of 2020, VWFS studies indicated that about half of Brits had become more interested in road trips and holidaying in the UK.

When it comes to staycations, the seaside is the most popular place with 33 per cent of votes, while countryside retreats got 25 per cent and city breaks 13 per cent.

Despite planning to stay in the UK in winter, holidays are high on the agenda for many Brits, with 24 per cent saying they had made plans to get away in December and January, down just one per cent on summer 2021.

VWFS data analysts say the fact many people have moved to a work from home schedule could be one reason for the boom. Those who are willing to take their laptops away with them can enjoy a change of scenery without using any valuable holiday days.

Mike Todd, CEO at VWFS UK, said: “Holidaymakers were swapping their passports for walking boots and picnic blankets when staycations took off again last summer, but I don’t believe many people expected domestic getaways to be quite so popular this winter.

“I think our research highlights the renewed importance of personal vehicles almost two years on from the start of the pandemic, as people are reliant on their cars for domestic holidays now that flying overseas is again fraught with uncertainty.

“There are so many wonderful places to explore on these shores, from St Ives to Scarborough, and our vehicles are central to unlocking these adventures – even the great British weather isn’t stopping people enjoying a good old fashioned road trip!”

Source: Shropshire Star

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Record-breaking year predicted for staycations – and these are the areas selling out quickest if you want to bag a deal

STAYCATION holidays are expected to boom again this summer, despite breaking records last summer.

UK tour operators are already seeing holidays sell out in popular parts of the country as families who missed out on last summer opt for a staycation in 2022.

Steve Jarvis, co-founder of Independent Cottages, said: “Last summer saw huge demand for UK holidays, with demand often far exceeding supply, and everyone that I speak to in the industry agrees that 2022 will be another busy year.

“However, some holidaymakers are likely to face the same availability problems as last year if they leave it too late to book.

“Prior to coronavirus, the booking trend for UK holidays was becoming more and more last minute, but this has changed and people are booking their UK holidays well in advance.”

The most popular destination, he said, was the Lake District, closely followed by the Peak District and the Cotswolds.

Eight per cent of holidays booked in the first week of 2022 were for the Lake District, while the Peak District and Cotswolds were seven per cent of bookings each.

Steve said other parts were also selling out, including Pembrokeshire in Wales.

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He previously warned, “Even though we’re still only in the first month of the year some of our more popular areas are already booked up.”

Last summer, travel companies reported an “unprecedented” increase in bookings for this year too.

James Boyce, head of Hideaway Holiday Group, said it was “staggering” to see lets book out so quickly.

He said: “We have seen a seven times increase in advance bookings made this year for stays in 2022, in comparison with bookings made in 2019 for stays in 2020.”

Awaze, which owns Hoseasons and cottages.com – two of the biggest holiday letting websites – said bookings for this summer were up 82 per cent compared with the same point in 2019 for 2020’s summer season.

Bookings for the whole of 2022 are up 62 per cent by September 2021.

You can still find a bargain though – Haven have four-night breaks from just £49.

By Kara Godfrey

Source: The Sun

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Northumberland village named as one of the best staycation destinations in the UK

A historic village in Northumberland’s Tyne Valley has been named as one of the UK’s top staycation destinations according to data on Airbnbs.

Aside from being extremely pretty, we’re talking about somewhere that’s known for its Roman heritage, independent shops, and a host of excellent places to eat and drink – less than an hour from Newcastle by car, bus or train.

The study by homedit.com took into account several factors including number of Airbnbs, average person capacity, and number of reviews, and named Corbridge the sixth best place in the UK for a staycation, with a score of 8.3 out of 10.

Dave Crompton, chairman of community group Visit Corbridge, said it was really good news for the village. And as to why its so popular among staycationers, he had a few ideas.

Dave said: “I think, first of all, the quality of the shops, eateries and business is very good. The local history of the area and the heritage play a part too. And it’s ideal for cycling and walking holidays.

“You’re in the country but you’re not in the country, if you see what I mean. People want the countryside, but they also want the add-ons that come with it – the nice extras such as the shops, the restaurants and the pubs.”

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And he says that the holiday let which he owns in Corbridge has been fully booked since lockdown restrictions were lifted in April 2021.

But it’s not just among staycationers that Corbridge is popular. Local residents and day-trippers benefit from its popularity too.

Dave continued: “The village is going well generally. The bakers, greengrocers, butchers and gift shops are all doing well and that’s great for us as a village. So, when you come, you get the complete package.”

His hope is that this year will be another big one for tourism in Corbridge. After last year’s Come Home to Corbridge campaign, which focused on promoting the village as a safe destination, this year the village will be going back in time and embracing its Roman heritage.

With the arrival of the Hadrian’s Wall 1900 Festival, which runs from January until December, a group has been set up to Romanise the events which happen every year in the village.

Dave said: “The normal midsummer festival we have, everything will be Roman. The apple picking event will be Roman too. We’re even having a Roman bake-off. 2022 is a huge year for us to reinforce how good a destination Corbridge is to visit!”

Stefan Gheorge, a spokesperson from Homedit.com, who compiled the list of top UK staycation destinations, offered some travel advice ahead of book a UK break this year.

He said: “You should always plan far in advance so that you can secure the travel dates that you want. As well as this, it is also important to plan your activities and places to visit, particularly if they need booking.”

“When travelling in an unfamiliar place, it is important to manage your money wisely as you may be surprised by price differences. By looking at reviews of potential accommodation, you can make sure that where you will be visiting is safe and also lives up to expectations.”

The top 10 staycation destinations in the UK are as follows:

1. Settle, Yorkshire

2. The Cotswolds

3. Portree, Isle of Skye

4. Wells, Somerset

5. Newcastle, County Down

6. Corbridge, Northumberland

7. Abergavenny, Monmouthshire

8. Shrewsbury, Shropshire

9. Melrose, Scottish Borders

10. Shaftesbury, Dorset

By Daniel Hall

Source: Chronicle Live

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Staycation bookings boost with record-breaking year ahead for cottage breaks

The UK is set for another record-breaking year of domestic travel with continuing Covid uncertainty affecting international trips.

Rental platform Independent Cottages has revealed that, between December 28 and January 9, it witnessed a 170 per cent increase in website traffic compared to the same period the previous year – and a 200 per cent increase in booking enquiries.

With the Omicron variant posing yet another challenge to the travel industry, and some European countries still out of bounds, many holidaymakers will be looking for an alternative getaway destination.

Data from Independent Cottages indicates that, for many, the desire for a break closer to home will prevail once again and people will continue to support the domestic travel sector through the next 12 months.

And whilst it is the summer months that are typically thought of as more popular for UK breaks, Independent Cottages is currently witnessing more bookings for the early months of this year than any other period. Interestingly, one in eight (12 per cent) of all recent bookings have been for breaks during January.

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Steve Jarvis, co-founder of Independent Cottages, said: “Last summer saw huge demand for UK holidays, with demand often far exceeding supply, and everyone that I speak to in the industry agrees that 2022 will be another busy year.

“However, some holidaymakers are likely to face the same availability problems as last year if they leave it too late to book.

“Prior to coronavirus, the booking trend for UK holidays was becoming more and more last minute, but this has changed and people are booking their UK holidays well in advance.

“This is partially due to UK holidays being the only option for many during 2020/21 but also because a lot of people have since been impacted and disappointed by cancelled foreign holidays due to variants such as Omicron.”

As staycations have been the only option for many during the last two years, it is unsurprising that interest in this type of holiday remains high for 2022, and it is the Lake District that is currently the most popular destination so far this year.

Of holidays booked in the first week of 2022, eight per cent have been for this area, with the Peak District and Cotswolds following in joint second place and accounting for seven per cent of bookings each, according to Independent Cottages.

It offers a wide selection of self catering holiday accommodation from fisherman’s cottages and town houses to farm stays. With a huge range of dog friendly cottages and accommodation ideal for large group bookings, a romantic break or a family holiday, there is also a large selection of luxury properties.

The recent data from Independent Cottages suggests another positive year for the UK travel market with holidaymakers’ interest being at a record-high for the first week of the year. This, coupled with the warmer months approaching, suggests that there will be even more growth within this market in the coming months.

By Brett Gibbons

Source: Wales Online

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Holiday let owners made a third more money last year than in 2019

Holiday let owners are making third more money in 2021 than they did in 2019, as the popularity of staycations continues.

The average annual income generated by a holiday home in 2021 was nearly £28,000 – up 33 per cent on 2019, according to data from rental agency Sykes Cottages.

This was due in part to a 35 per cent increase in occupancy rates, it said, with homes in the Lake District having the highest occupancy at 80 per cent.

It also found that Dorset, the Cotswolds, and the Peak District were the top three earning locations for owners in 2021, while Devon and Somerset rounded out the top five.

Based on the average income figures for a four-bedroom holiday let, those in Dorset earn their owners nearly £36,000 per year.

Meanwhile, four-bed properties in the Cotswolds and the Peak District generate just over £35,000 and almost £34,000 respectively.

The income uplift came as many shunned foreign holidays due to travel restrictions and ongoing uncertainty.

In terms of occupancy rates, the Lake District was closely followed by Northumberland, the Peak District, Southern Scotland and the North York Moors.

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In all of these locations, holiday homes were rented out for more than 78 per cent of days in the year.

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.’

How to make your holiday home more profitable

Sykes Cottages has put together five tips to help holiday let owners make their home more profitable.

1) Shorter breaks: Could lead to a 58 per cent increase in revenue

Enabling travellers to book shorter stays of two to four days at properties will open up the calendar to a lot more bookings.

Sykes has found that holiday homeowners who opt to do this can expect to make 58 per cent more per year than those who don’t.

Offering shorter breaks attracts guests who might only want to book a couple of days off during the working week, such as groups of friends, students or couples, as well as those who prefer full weeks. By doing this, owners are ensuring the property is less likely to have any weeks where it is empty and not making money.

2) Dress up your garden: Up to 15 per cent increase in revenue

After 18 months of on-and-off restrictions forcing people to stay inside, it’s little surprise that holiday homes with gardens earn 15 per cent more than those without.

Cty dwellers, families and holidaymakers with pets are particularly likely to look out for homes with outdoor space – especially if they’re looking to visit during the summer months.

To make sure a garden is holidaymaker- ready, homeowners might even consider investing in professional help to keep it looking its best all year round.

3) Give guests the option to get cosy: Up to 21 per cent increase in revenue

During the colder months, there’s nothing better than warming up by a fire after a winter walk.

This rings true with UK travellers, as Sykes has seen properties with an open fire or log burner earn 21 per cent more than those without.

With a working fireplace now a rarity in many homes across the country, ensuring a holiday let has a log burner not only gives guests somewhere to dry off after a day of exploring, but it can also help to create a welcoming atmosphere.

4) Consider installing some luxuries: Up to 66 per cent increase in revenue

Depending on the holiday home’s size, installing luxuries such as a hot tub, sauna, pool table or games room could help to draw all types of guests year-round.

Especially with the weather being so unreliable, holidaymakers are often looking for alternatives to fill their time if they’re unlucky enough to experience rain throughout their staycation.

While providing these extras can be costly, Sykes has seen holiday let owners reap the rewards and earn up to 66 per cent more for a hot tub, 33 per cent more with a pool table and 61 per cent more with a sauna.

5) Make sure your location works: Up to 21 per cent increase in revenue

For those who have not yet invested in a holiday home, they must ensure they research a potential property’s location as this is key to securing a good number of bookings throughout the year.

Sykes has found that properties in towns earn 21 per cent more than those in cities and 9 per cent more than those in smaller settlements – suggesting that staycationers like a location that offers them some level of remoteness, but still somewhere with lots to see and do.

Homeowners might also consider somewhere near the coast or one of the UK’s national parks, with many holidaymakers keen to take on walking trails and enjoy picturesque scenery.

By GRACE GAUSDEN

Source: This is Money

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