holiday let

We may not have had overseas tourists this year – but more UK visitors have visited Shropshire since the pandemic struck.

Unable to travel abroad people in Britain have searched for holidays and adventures closer to home.

Many have arrived in Shropshire for the first time and will call into the county’s Tourist Information Centres for advice on how to make the most of their visit.

The Tourist Information Centre is Oswestry is run by Oswestry and Borderland Tourism.

Lastest figures for visits to the information centres go back to May, when 300 people called in during the month. And that was before the school summer holidays.

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There was also a huge increase on numbers going online to research – 100 per cent up on May 2019 and 25 per cent up on April of this year.

Karen Pringle, from the Oswestry TIC, said: “This year had been great for accommodation providers, from hotels and B&Bs to self catering units and campsites. They all say there have been really busy.

“People have told us they like Shropshire because it is rural and relatively unpopulated – they feel safe.”

Karen said that a majority of people were visiting the Oswestry and borders area for the great outdoors.

“Lots of people come here to walk and enjoy the countryside. And we have had so many this year asking where they can paddleboard,” she said.

“Of course we point people not only to the local area but to all of Shropshire because we have so much in the county to see, from the Ironbridge Gorge to the beautiful county town of Shrewsbury, from the South Shropshire hills to our canals. It really is a very special place. And of course we have Wales on our doorstep.”

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She said September and October were expected to be just as busy for tourism.

“Once the summer holidays have ended we always have an influx of people who haven’t got children and of course retired people. They go on holiday once the children have gone back to school.”

She said she hoped that those who had visited Shropshire for the first time this year would return and make it a regular holiday destination.

“Many have said they will come back. They love the scenery and also they say they love the friendly people.

“When we live here we take it for granted.”

To make visitors to the county feel safe, more than 300 tourism and hospitality businesses in Shropshire have been awarded the official ‘We’re Good to Go’ quality standard, demonstrating they have followed all the Government’s Covid-19 guidelines to make them as safe as possible for visitors.

By Sue Austin

Source: Shropshire Star

Holiday let mortgages may once have been tricky to come by, but more lenders are getting into the fold. Investors on the fence about short-term let investment could now have more reason to take the plunge.

The number of buy-to-let mortgage products available to those looking at holiday lets has more than doubled since August 2020. If you’re looking into funding your short-term or holiday let investment, there are now 186 different products on the shelf, compared to only 74 this time last year.

And there are also more lenders than ever to choose from, with 25 mortgage companies now offering products. Last August, there were just 14 in the arena, showing how appetite is growing for this market niche.

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Research published by Moneyfacts shows that the average fixed rate holiday let mortgage last month was at 4.14%. This is up from 3.53% in August last year, but the sector is still attracting massive interest from investors.

Still relatively niche

According to Rachel Springall, finance expert at Moneyfacts, we could expect to see a bigger rise in this side of the mortgage market.

“It’s positive to see a rise in holiday let product choice for landlords over the past few months, but the market is still relatively niche as there are less than 200 deals available,” comments Springall. “As the demand for staycations remains evident, it would not be too surprising to see more growth in this market in the months to come.”

Hamptons International has also reported a major rise in the number of holiday let incorporations so far this year. They saw 1,404 between January and June, the highest number since records began and an increase of 119% since 2019.

Springall adds: “Whether the appetite for staycations falls into 2022 is unknown but for the moment it’s evident landlords are taking advantage of the opportunity to earn an income through holiday lets.”

“Those who may have saved some additional disposable income during the UK lockdown, or are looking for alternative investment opportunities, may then be keen to get involved.”

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Appetite for staycations: is it just the Covid effect?

A big driver behind the rise in interest in UK holiday lets is the surge in the ‘staycation’. This trend has been going strong since 2020 as a direct result of travel restrictions due to Covid.

However, staycations are much more than just a recent fad. As the world at large has become more environmentally aware in recent years, many are opting to fly less to reduce their carbon footprint. This, too, plays a major role in the shift away from holidays abroad. As the likes of Airbnb and other short-term let options outside the traditional hotel model have also become more popular, this has opened the area up as a major investment class.

It is therefore likely that even once travel abroad picks up, more people than ever will want to stay local.

From an investment perspective, there are many benefits to short-term and holiday lets. Annual returns can far surpass traditional buy-to-let income, and the investment falls under different tax rules.

By Eleanor Harvey

Source: Buy Association

A lack of financial return on savings in the bank has seen an increase in homeowners turning their attention to investing in a holiday let, according to new research.

Almost three quarters of homeowners are eager to look at ways to invest savings and increase their financial portfolio, with nearly two thirds considering a holiday let a good investment.

The research was commissioned by Original Cottages, the national holiday cottage company with the local touch for guests and homeowners.

Original Cottages have seen this growing trend in action, with a 40% increase in homeowner enquiries about holiday lets, compared with last year.

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Given the surge in staycations, it’s unsurprising to see that almost three quarters (73%) of those surveyed were more likely to consider investing in a holiday let, compared with how they would have invested their savings five years ago.

Rachel Springall said, “In such a low interest rate environment it’s understandable for consumers to seek out alternative ways to invest, but not every consumer may feel comfortable to risk their cash by investing in the stock market.

“There are lots of different investment opportunities out there compared to a simple savings account and, in most cases, savers with a flexible savings pot could be earning very little each year on their cash.

“Alternative assets can appreciate over time in value, but it is important consumers get advice before investing. Property has been an enticing investment opportunity in recent years due to rental demand and homeowners can let out their home or buy a second home to meet the demand of UK holiday makers.

“The surge in staycations has made the prospect of holiday let even more appealing and if consumers are unsure where to start, seeking some guidance to make the process simple and stress-free is wise.”

Almost two thirds (63%) of those surveyed agree a holiday let is a good investment, with over half (58%) interested in letting existing properties they own, while over a quarter (29%) of people would consider purchasing a property to convert into a holiday let.

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Whilst almost half (46%) of homeowners surveyed said a holiday let would be their ideal investment, the research also highlighted homeowners have considered alternatives ways to make the most of savings including cryptocurrencies (21%), a business (18%) and precious metals (17%).

Hannah Cooper, Regional Head of Property Recruitment for Original Cottages said, “Staycations have driven demand for holiday lets as more people than ever are holidaying closer to home, presenting a great investment opportunity.

“Whilst our research revealed there is an appetite to invest in a holiday let, well over a third (39%) are worried about not having enough time to manage the property and over a fifth (29%) are concerned by the level of admin work required.

“Whether you have a second property or are considering purchasing a property to transform into a holiday let, we make holiday lettings stress free and profitable. We also provide advice and property management by a team of local experts, helping you make the most of your investment.”

Original Cottages’ team of local experts work directly with homeowners at every stage of the process to let their property. From advice on converting a property to a holiday let to marketing that drives year-round bookings and even hiring cleaning and maintenance staff once the property is listed, the combination of scale as a national brand, along with the local management teams, ensure homeowners maximise their investment’s profitability.

Source: Ealing Times

Interest rates on cash savings accounts fell to record lows on average during 2021 and whilst some are starting to recover, it would be understandable for savers to be considering alternative ways to invest. The latest research from Original Cottages revealed that almost three quarters (71%) of homeowners were keen to explore other ways of investing away from a traditional bank savings account and two thirds (63%) considered holiday let as a good investment opportunity.

Property has been an enticing investment opportunity in recent years due to rental demand and not only has the buy-to-let arena overall bloomed, but there has also been a rise in mortgage options for those exploring holiday let. According to Moneyfacts.co.uk data, there were just 74 deals from 14 lenders available to investors in August 2020, but this has more than doubled to 186 deals from 25 lenders this month. The expansion in choice within this niche market comes at a time when demand for staycations is surging.

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UK staycations have thrived during 2021 at a time where the uncertainties surrounding international travel have been prevalent and the recent study from Original Cottages revealed 73% of respondents were more likely to consider investing their savings into a holiday let now compared to five years ago. There has been considerable growth in the holiday let market during 2021, according to Hamptons International . They recorded more holiday let incorporations in England, Scotland and Wales between January and June 2021 than the whole of 2020 and is the highest number (1,404) since records began in 2007.

Investors exploring the prospect of having a holiday let of their own may feel the prospect is daunting, so seeking the expertise of a company in tune with the ever-growing market for guidance is wise. Hannah Cooper, Regional Head of Property Recruitment for Original Cottages said, “Staycations have driven demand for holiday lets as more people than ever are holidaying closer to home, presenting a great investment opportunity. Whilst our research revealed there is an appetite to invest in a holiday let, well over a third (39%) are worried about not having enough time to manage the property and over a fifth (29%) are concerned by the level of admin work required. Whether you have a second property or are considering purchasing a property to transform into a holiday let, we help make holiday lettings stress free and profitable. We provide legal advice and property management by a team of local experts, helping you make the most of your investment.”

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Alternative investments

Consumers looking for alternative investments can find various options out there, which could appreciate more than a cash savings account. As the value for assets can go down as well as up, it is important consumers seek advice before they invest. The below list is a selection of alternative investment options we have drawn together that consumers may be keen to explore: 

• Investing in real estate via Buy-to-let may be a good alternative for those either looking to start out with one property – or those looking to build a portfolio. Some borrowers may even wish to consider setting up a limited company and whilst rental income may seem enticing, seeking advice into the tax impact and how to arrange an overseer of the tenant is wise.
• Holiday-let works similarly to a buy-to-let mortgage, except there are additional criteria for these loans which allow borrowers to let out the property to holiday makers. As there has been a rise in UK vacations due to the pandemic, it’s understandable to see the potential to invest in a holiday home. Undertaking thorough research into popular locations, weighing up tax benefits, reading up on rules regarding residency periods and other potential expenses outside of utility bills can feel daunting, so seeking advice before entering an arrangement is wise.
• Commodities can be an attractive alternative investment as part of a balanced portfolio and consumers could invest in gold. It is possible to buy physical gold through the Royal Mint or invest in gold stocks through exchange-traded funds (ETFs). Past performance value should not be presumed as an indication of the future but during times of stock market turmoil, gold can go down as well as up in value.
• There are other ways to invest in a physical item away from real estate or gold bars, such as in antiques, art, wine, whisky, stamps, or coins which have been worthwhile considerations over the years, as alternatives to grow in value. However, seeking out an expert before purchasing would be wise, not just at the point of selling off these assets. Someone may have an interest in each area but it’s important they choose wisely if considering the item as an investment to appreciate over time.
• Crowdfunding may be an interesting investment alternative to those looking to support start-up businesses. Some may be keen to invest considering how the pandemic impacted those looking to get their business off the ground and even those who struggled through lockdown. There are various websites listing opportunities, but its important consumers read up on the terms of their investment, the risks involved, and what they might receive for doing so.
• During a low interest rate environment, savers may wish to consider stocks and shares as an alternative, but they must be mindful that fund values can fall as well as rise. Seeking independent advice could be a good move to ensure they pick the most appropriate funds for their attitude to risk and ideals. Climate change remains a key issue in the media and consumers may be considering sustainable investments. Ethical funds have surpassed non-ethical over the past couple of years and this may not just entice those keen to invest more responsibly but also those chasing good returns.
• Cryptocurrency has been a notable investment trend in the media, but it can be volatile and is not regulated. Buying and selling at the right time is crucial, and if consumers are interested in investing, they would be wise to monitor the fluctuations online, as they would need to with any type of investment where the value can go up as well as down. 

By Rachel Springall

Source: Moneyfacts

The idea of a UK holiday home never seems to lose its appeal. But in the past 18 months they have become more popular than ever — for good reason.

Staycations have boomed thanks to Covid, with tourist body VisitBritain anticipating over 50 per cent more domestic holidays this year than in 2020.

Using a holiday home not only as a personal bolthole, but as a nice little earner has also become fantastically popular.

In June, there were 10,290 active Airbnb listings just in Cornwall alone, as people flipped their properties to bag extra cash through so-called short lets.

So if you want to join the holiday home craze, here are seven golden rules to follow.

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1. Lock down a location 

You may have your favourite locations: after all, you will be staying in the new home, as well as letting it out. 

But if you want to follow the 2021 Government statistics, the most popular places to holiday in the UK this summer were the South-West — way ahead on 24 per cent — with North-West England, Scotland, Yorkshire and East Anglia next up. 

Or if you want to short-let your property, interiors firm Crafted Beds has worked out the average cost Airbnb hosts charge in different cities, which are more popular than rural locations for two or three-night breaks. 

Top comes Newcastle on an average £122 per night, followed by Leeds, York and Exeter, all about £120.

2. Size matters

Your budget may determine this, but if you can, look at the likely visitor market for your area. 

If the location is off the beaten track and quiet, a small property appeals for romantic weekend bookings or longer periods for walkers. 

If you are looking at a beach holiday home, it’s likely to attract families and groups of friends, so a larger property is the order of the day. 

3. Find the funding 

Independent finance service Moneyfacts says that just 74 holiday let mortgages were available in August 2020; now there are 186. However, there are many options. 

‘A holiday let mortgage is designed for those borrowing against a property let weekly or on a shorter basis such as Airbnb. 

‘It differs from a buy-to-let mortgage designed for properties let longer-term.

‘And a holiday home mortgage is different again as it’s for the owner’s personal use,’ says Mark Harris. 

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4. Good credentials

James Greenwood, of Stacks Property Search, says: ‘Open-plan works well for holiday lets, but separate utility space is worth a lot. Storage allows the owner to keep their own stuff while renting out. Parking is a strong selling point.’ 

His Stacks colleague Clare Coode — who lives in Cornwall — adds: ‘Think about your online appearance: property that’s Instagrammable always helps. 

‘Location-relevant fixtures like marine colours and panelled walls in seaside locations are good.’ 

No matter how lovely the home, you’ll need to equip it well; quality furniture and fittings that will take robust wear and tear (and pets if you allow them) add to the bill. 

Schofields Insurance, a specialist in holiday lets, suggests £15,000 to upgrade the interior of a two-bedroom cottage.

5. Hire an agent

The likelihood is your holiday home is some way from your main residence, so being on the spot for every change of tenants is difficult. 

Agents charge 20 to 25 per cent of the booking fee. It sounds a lot, but it covers cleaning, laundry and key handover. 

On top, the agent will advertise, answer enquiries, take the bookings, plus handle emergencies. 

And agents’ fees are tax deductible. 

6. Take on tax 

The rules suggest the most efficient property is a furnished holiday let, rented out for no more than 31 consecutive days to one customer. 

In addition, the furnished holiday let must also be available to the public for at least 210 days of the tax year and let out to paying customers for at least 105 days. 

7. Add on insurance

It’s dull, but essential. Even if you’ve let your holiday home out for a few weeks, most insurers will not cover Airbnb-style short lets. 

So you may need separate cover. GoCompare is the first service of its type to ask insurance applicants if they want to host short-let tenants and if so, they have to pay for additional cover. 

By GRAHAM NORWOOD FOR THE DAILY MAIL

Source: Daily Mail

New research by Hoseasons suggests the staycation boom will continue into 2022 despite the easing of international travel restrictions.

Research by Opinion Matters on behalf of the UK tour operator between August 27 and September 9 this year showed 83% of those who took a staycation this year hope to do so again next year, with 24% already planning their next trip.

More than a quarter of holidaymakers (28%) polled preferred a staycaytion over a holiday abroad while just over half, 52%, planned to take one of each in 2022.

The research also revealed a trend for a ‘sleighcations’ with more than one in five saying they were booking or considering a winter UK break.

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The results are based on two separate online surveys, with the first receiving 2,007 general respondents, and the second receiving 1,001, all of whom had taken a staycation this year.

In light of the research Simon Altham, group chief commercial officer at Hoseasons’ parent company Awaze, urged agents to encourage holidaymakers to book early for 2022.

He said: “Savvy staycationers are already snapping up the best breaks and securing the best properties to make sure they don’t miss out. We’re not saying 2022 is selling out already – it’s far too early for that given the incredible range of holidays the UK has to offer – but now really is the right time to start looking and booking.”

According to the research, the top reasons why consumers enjoyed a staycation were the comfortable and relaxing accommodation (34%), a change of environment (32%), less stress than going abroad (30%), and improved mental health (29%) while more than a quarter (27%) were pleased to support local economies.

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Consumers also cited the experience of UK holiday nostalgia (15%) as the reason they enjoyed a UK break in 2021, with more than a third (36%) naming fish and chips on the beach and more than a fifth (22%) saying building sandcastles was their favourite staycation memory.

Altham added: “It doesn’t matter if it was 50 years ago, 30 years ago, or more recently – the times we spend on UK breaks are some of the happiest many of us can remember. That’s why, after the year we’ve all had, it’s no surprise that so many staycationers are looking to relive the good times all over again in 2022 and create more special moments to treasure for many years to come.”

The results support booking data from Hoseasons’ parent company Awaze, which has reported that bookings for summer 2022 are up 82% compared to the same time last year for summer 2020, and up 62% for the whole of 2022.

The rise in demand for staycations, which has led many lodge and holiday park owners to expand their offering, has also resulted in Hoseasons more than doubling the size of its portfolio compared with this time last year.

The company has also launched a six-figure marketing campaign, centred on TV advertising, which invites consumers to ‘Relive the Good Times’ in 2022 and beyond. Ads air on ITV, Channel 4, and Sky Media networks until October 24 and feature Hoseasons’ range of self-catering holidays. The campaign is also being promoted on YouTube and email.

By Juliet Dennis

Source: Travel Weekly