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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.

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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.

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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

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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.

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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.

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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

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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.

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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.

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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

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Easter bookings boom at budget UK holiday parks as airport chaos continues

Families have turned to Easter staycations amid chaotic scenes of cancelled flights and long queues at major airports, travel experts have said.

Budget holiday operators said they are seeing strong demand as families decide to stay at home rather than brave disruption to journey plans abroad.

Haven, which has 41 holiday parks in the UK, is already more than 90 per cent booked for Easter, with nearly half of its 2.5million visitors booking for the first time this year.

Meanwhile Parkdean Resorts, which has 66 parks, has needed to hire 7,000 seasonal workers to keep up with high levels of demand.

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The managing director of Haven Simon Palenthorpe told BBC Radio 4 on Monday: “I think it has made people think a bit more about holidaying at home. More generally things are looking pretty positive for our industry at the moment.

“This Easter for example, Haven – which is actually the UK’s largest domestic holiday business – is over 90 per cent booked, and more generally this year we’re going to be welcoming 2.5million holidaymakers to our 41 parks.

“And we’re seeing more newcomers to Haven, which is I think pretty interesting, more newcomers than ever.”

Parkdean chief executive Steve Richards said his company planned on investing £140m in its accommodation and facilities in the wake of the boom.

“This investment is great news for our customers, staff and the local economies in which we operate,” he told The Daily Mail.

“2021 was a huge year for staycations, and our teams will continue to go above and beyond to deliver phenomenal service for our guests, making sure that 2022 is even better.”

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It comes as tourists faced a ‘manic Monday’ of flight cancellations, scuppering Easter plans for many ahead of the bank holiday weekend.

British Airways axed at least 64 European and domestic flights from Heathrow on Monday to destinations such as Berlin, Dublin, Geneva, Paris, and Stockholm. Domestic flights were also affected.

The airline has been forced to trim its schedules until the end of May while it is hiring extra staff to cope with the surge in demand from passengers.

Meanwhile, budget carrier EasyJet cancelled at least 25 flights to or from Gatwick.

It affected routes to Amsterdam, Copenhagen, Glasgow and Milan.

By Josh Salisbury

Source: Evening Standard

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The top 10 UK staycation destinations for an Easter break

THOUSANDS of Brits are heading off on a staycation over Easter, as UK holidays remain a popular option for families.

Airbnb has revealed the top destinations that people are booking up over the Easter hols, to give you some inspiration on where you might like to go.

And it might come as a surprise to hear that neither Cornwall or Devon made the list.

We’ve got the top 10 destinations Brits are visiting during the holidays.

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Prestatyn, Denbighshire, Wales

Taking the top spot was Prestatyn in Wales – a seaside town in the north of the country.

Right on the coast, Prestatyn is a perfect spot for taking long walks on the beach, grabbing some fish and chips and sunbathing.

The Welsh hotspot has seen the biggest rise in Brits searching for UK staycations on Airbnb.

Carmarthen, Carmarthenshire, Wales

A Welsh destination also came in second place – Carmarthen in Camarthenshire.

Carmarthen has been a market town since Roman time and its modern indoor market runs six days a week and draws huge crowds.

Beyond the market, the town is full of independent shops, art galleries and vintage shops.

Aintree, Merseyside, England

Taking bronze was Aintree in Merseyside, coming in top for English destinations.

Aintree is known for its race course, but there’s a lot more to do than just watch the horses.

The town has shopping, pubs and walks along the Leeds-Liverpool Canal, making for a very peaceful staycation.

It’s also just five miles from Liverpool so it’s easy to take a day trip into the city.

Sheffield City Centre, South Yorkshire, England

Sheffield has a huge amount to offer Brits who want to take a UK holiday.

The city has gone from being an industrial powerhouse to a rising star on the UK’s arts and culture scene, with a host of galleries, theatres and museums.

Sheffield also has countless restaurants, pubs and shops to keep you entertained.

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Balloch, West Dunbartonshire, Scotland

Balloch is the first Scottish destination to make it onto the list.

The village is sat on the south west shores of Loch Lomond so there are plenty of beautiful walks along the lake.

It’s just an hour from Glasgow and has excellent transport links so it’s easy to pop to the nearby city if you fancy a day trip.

Chipping Norton, Oxfordshire, England

Chipping Norton is the highest town in Oxfordshire with stunning countryside views.

The town is known for its antique shops and regular market, and has lots of choice of restaurants and bars.

Chipping Norton is a great base for exploring further afield as it’s right on the edge of the Cotswolds, lying between Oxford and Stratford upon Avon.

Dunbar, East Lothian, Scotland

Dunbar is the second and final Scottish destination to make the top 10 list.

The town is on the North Sea coast and is around 30 miles east of Edinburgh.

Dunbar is famous for its art and has a free interactive art trail which is a perfect way of seeing the town.

As well as art, Dunbar is packed full of independent shops and historic buildings.

Merthyr Tydfil, Glamorgan, Wales

Merthyr Tydfil is the third and final Welsh destination on Airbnb’s list.

The town is about 23 miles north of Cardiff so it’s a great spot to have some peace and quiet while still being fairly near to a city.

If you like walking then this is a perfect choice as the town has a host of valleys and hills with beautiful views.

And once you’ve finished, there’s loads of restaurants, pubs and cafes to grab a drink and a meal.

Lowestoft, Suffolk, England

Lowestoft in Suffolk came in at number nine on the list and is the northernmost part of The Suffolk Coast.

It is also famously the most easterly town in the UK and is the first place to see the sunrise.

The town is a popular choice for families as there is plenty to do, with two piers, a wildlife park, museums and a theatre.

It’s even home to the Pleasurewood Hills theme park – perfect for thrill seekers.

Thirsk, North Yorkshire, England

Rounding out the top 10 list was Thirsk in North Yorkshire.

The town is sat midway between the North York Moors and the Yorkshire Dales so it’s a great choice if you want to strap your walking boots on and set off on foot.

The historic town has a cobbled market square full of independent shops, restaurants and pubs.

Amanda Cupples, general manager for northern Europe at Airbnb, said: “The nation is set to enjoy the first Easter weekend without Covid restrictions in two years, and it’s great to see Brits are exploring up-and-coming areas of the UK to make the most of it.

“The top trending destination list provides ample inspiration for those looking to get away and explore a new place over the long weekend.

“By visiting these local destinations, Brits are supporting local economies and communities, and for those based in these destinations who are considering letting their home on Airbnb, now is a great time to sign up.”

By Josie Klein

Source: The Sun

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Staycation: UK’s best stately homes named – including gorgeous royal favourite

The UK has many incredible stately homes. With gorgeous grounds to explore and a glimpse of luxury, they’re the perfect attraction for a day trip on a UK staycation.

New research from holidaycottages.co.uk has named British people’s favourite stately homes.

The holiday company surveyed British people across the nation to find the most popular stately home.

The winning stately home was the incredible Chatsworth House in Derbyshire, chosen by 23 percent of those surveyed.

Chatsworth House is a highlight of any trip to the Peak District and offers a wide range of activities.

The gorgeous house and grounds have featured in Pride and Prejudice, Peaky Blinders and The Duchess.

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Currently closed, Chatsworth House will reopen for visitors on March 26 although shops are still open.

In April, the stately home will host 12 incredible sculptures as part of an interesting collaboration with Burning Man.

The UK’s second favourite stately home was Windsor Castle, which was chosen by 22 percent of Britons.

A royal sanctuary, Queen Elizabeth has reportedly decided to make the castle her permanent home.

The monarch used to travel to the beautiful 11th century castle on weekends. It is the world’s oldest and largest inhabited castle.

British tourists who want to visit Windsor Castle this year could travel to see a special Coronation exhibition.

The exhibition will run from July 7 to September 26 as part of celebrations for The Queen’s Platinum Jubilee.

In third place was Blenheim Palace in Oxfordshire which was voted for by 19 percent of those surveyed.

The Oxfordshire estate was the birthplace of Winston Churchill and has 12,000 acres of land.

A family favourite, visitors can enjoy the two mile Marlborough Maze or the Palace’s miniature train.

Kensington Palace in London took fourth place and was 17 percent of Britons’ favourite stately home.

The Palace is home to the Duke and Duchess of Cambridge and has glorious gardens and elaborate decor.

Longleat House in Wiltshire was the fifth favourite stately home and was voted for by 16 percent of Britons.

Renowned for its incredible drive through safari, Longleat has been occupied by 15 generations of the same family.

Alnwick Castle in Northumberland was chosen by 15 percent of those surveyed and is famous as the filming location of Harry Potter.

Some of the UK’s best stately homes have incredible grounds, perfect for a summer day out. 

UK’s favourite stately homes (holidaycottages.co.uk)

  1. Chatsworth House
  2. Windsor Castle
  3. Blenheim Palace
  4. Kensington Palace
  5. Longleat House
  6. Alnwick Castle

By ESTHER MARSHALL

Source: Express

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Shropshire is a staycation surprise with lovely walks, great cafes and character pubs

Shropshire is a bit off the radar but it’s every bit as impressive as the more famous Lake District or Yorkshire Dales and far less crowded for an enjoyable break.

“Where exactly is Shropshire?” was the blanket response I got when telling people about my staycation. Their reactions surprised me, although I have to admit I knew little about the county other than its vague geography.

With Wales to the west and Birmingham about an hour’s drive east, it’s not like Shropshire is in the middle of nowhere.

It hasn’t got its name in lights like the Lake District or the Yorkshire Dales but, as I found, it doesn’t mean it’s any less impressive.

Driving through the undulating hills of the Shropshire countryside, I was taken aback at how stunning the landscape is. Why don’t more people talk about this place, I wondered.

But secretly I was glad it’s a bit off the radar. It meant we weren’t fighting through crowds like in some of the better known tourist areas.

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On one walk – a 6.8-mile trek to Linley Beeches – we didn’t see a single person. Just a few cows and sheep for company. That ramble took us to a mile-long double row of ancient beech trees at Linley Hill, standing to attention like a line of soldiers. These are some of the county’s most iconic treescapes.

Shropshire is a walker’s paradise so off we went – me, my husband Ben and our six-month-old Asa strapped to him.

Next we tackled Caer Caradoc hill. A word of advice – don’t let the word “hill” fool you. It felt like a mountain in places for us novice ramblers.

Caer Caradoc overlooks the market town of Church Stretton which has an abundance of cafes, antique shops and independent traders. If walking up hills isn’t your thing you can enjoy pounding the pavements here instead.

As soon as you enter Berry’s – an award-winning coffee house set within the ground floor of a Queen Anne townhouse – you’re met by a counter of delicious looking cakes. But I ordered scrambled eggs and smoked salmon to power me up those hills.

This area is an excellent base for holidaymakers, especially hikers, horse riders, mountain bikers and nature-lovers.

Our home-from-home for the week was The Dovecote, built over an 18th century coach house, and booked through Sykes Cottages, just down the road in the village of Wistanstow.

Surrounded by the fields of the Shropshire Hills, an Area of Outstanding Natural Beauty, it offers the ultimate setting for a romantic retreat for two (plus baby).

After upping our step count, the welcoming cottage also provided the perfect antidote – a hot tub.

Inside is an open-plan living space. With high ceilings and a magnificent inglenook fireplace with woodburning stove, it’s the ideal space to relax.

Contemporary furnishings perfectly complement the character and charm of the property’s exposed brickwork and original beams. Sympathetically restored, all of the ironwork in the cottage is either original or handmade by the local blacksmith.

On the first floor is a chic master bedroom with king-size bed and roll-top bath with handheld shower, as well as an en-suite shower room.

Outside, a pretty garden surrounds the hot tub, which is where we spent every night with a glass of wine after putting the baby to bed.

Owners Julie and Wayne go the extra mile with thoughtful touches for their guests. We arrived to find a box of indulgent doughnuts waiting for us – just what we needed after a long drive – as well as a pint of milk.

They’d also set up a travel cot at the end of the bed for our little one.

When we prised ourselves out of the hot tub we explored more of the surrounding countryside, including the National Trust’s Long Mynd, with its stunning heather-clad plateau.

We also visited nearby Ludlow for the day. Only a 15-minute train ride or drive south, this thriving medieval market town has gorgeous architecture as well as Michelin star restaurants and its very own castle.

We enjoyed Sunday lunch at Ye Olde Bull Ring Tavern, a characterful pub dating back to the 14th century.

The town of Craven Arms was a two-mile walk away from our cottage and has a well-stocked country supermarket.

And within stumbling distance of our holiday home was the Plough Inn, just a five-minute stroll down the road.

But there was plenty to keep us occupied at The Dovecote, with a Smart TV with Freeview and access to Amazon and Netflix, as well as wi-fi and a Sonos music system.

A starter pack for the woodburning stove was provided and a pizza oven is available on request.

So now I’ve told you all about the delights of secret Shropshire, do pass it on. But maybe not to too many people…

By Janine Yaqoob

Source: Mirror

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UK Expat Holiday Let Hotspots as Holiday Let Mortgage Availability Triples

Holiday let mortgages continue to grow in availability with the number of mortgage deals available tripling since 2020, according to Moneyfacts. This figure is also up by a quarter since September 2021, showing the rapid growth that is still happening in this sector of the UK mortgage market. With this increase in the availability of holiday let mortgages, investor confidence is also growing with Hodge Bank reporting a rise of 173% in holiday let mortgage applications.

The growing numbers interested in UK holidays or ‘staycations’ are likely responsible for the rise in holiday let mortgage options as holiday let properties become increasingly popular among UK expat and foreign national investors responding to the surging demand for this type of let.

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Holiday Lets an Excellent Option for UK Expat and Foreign National Investors

‘One good reason to choose a holiday let over a more traditional buy-to-let property is that a holiday let could be more profitable than a long-term let’ says Stuart Marshall. ‘Holiday lets can command higher prices – so much so that a week of renting a holiday let can earn as much as a month of renting a long-term let. This means that the national average rental yield for a holiday let is predicted to rise to 14% by 2022. Meanwhile, the average rental yield for a long-term let is 4.77%, with even the highest current average rental yield standing at 6.92% (Newcastle). This puts in perspective just how profitable a holiday let can be when purchased using a UK expat or foreign national holiday let mortgage.’

‘Further, there are some great tax benefits to be had from a holiday let property. The most obvious of these is the ability to claim mortgage interest tax relief which is now denied to most landlords. Further, any running expenses (such as bills, maintenance costs and the replacement of furniture) can also be claimed as tax expenses and the property will often be eligible for business rates instead of council tax. Of course, the property must also satisfy some rules to reap the maximum benefits. For example, new rules surrounding holiday lets require the property to be rented out for a minimum of 70 days a year and available to let for 140 days a year in order to be eligible for small business rates relief. However, with the right property in the right area, this shouldn’t be hard to achieve.’

Holiday Let Hotspots in the UK

For UK expat and foreign national investors looking to invest with a UK holiday let mortgage, there is a wide range of choice available for where to buy. There were a number of holiday let hotspots where prices have jumped dramatically in the past 12 months and these areas will likely be areas on interest when it comes to consumer demand. Therefore, investors who buy in these areas increase their chances of reaping strong returns and making sure that their property is let for as many days as possible.

Cornwall.
Amongst the most popular locations for UK holidaymakers and holiday let investors is Cornwall. Home to some of the most incredible landscapes in the UK, Cornwall is a constant draw for those looking for a staycation. Consequently, Cornwall is also an incredibly popular destination for investors utilising UK expat and foreign national holiday let mortgages.

Padstow has always been a popular town for UK holidaymakers, famous for its concentration of fantastic restaurants and as a retreat for those with second homes, which also contribute to the high prices in the area. Cornwall is, by far, one of the most expensive locations for investing using a holiday-let mortgage, with the average asking price in Padstow sitting at £658,588 according to Rightmove – a 20% increase in price in the last 12 months.

A slightly more affordable location to invest in using a UK expat or foreign national holiday let mortgage is St. Ives. St. Ives, like much of Cornwall, is home to some stunning beaches but has a uniquely stylish town to boast too. The average asking price in St. Ives is significantly lower than in Padstow –£473,161 compared to £658,588. While this is still expensive by the standards of many other holiday let hotspots and traditional buy-to-lets, there is a great variance in price. Though a two-bed cottage will often cost in the region of £450,000, flats often skew far cheaper with a one bed available for around £200,000.

Cheaper still is Newquay, where the average asking price has increased 13% in the last twelve months to £317,846. Newquay boasts 12 incredible beaches and a vibrant nightlife scene which is sure to appeal to tourists young and old. It’s also an incredibly popular spot for surf enthusiasts. Because of a massive boom in development, Newquay has great stock availability which contributes to the lower prices seen here compared to other areas in Cornwall.

According to data from Airdna, the average annual revenue for a holiday home in Cornwall is £33,594. Using this average along with the average asking prices for Padstow, St.Ives and Newquay, we can calculate annual rental yields of 5.1%, 7.1% and 10.6% respectively. Obviously, this amount will vary greatly depending on the type of property, the actual cost of the property, and the occupancy rate. However, using averages is a good way to estimate a guide figure for the rental yield.

North Yorkshire.
A far more affordable area than Cornwall is North Yorkshire, which has become an incredibly popular destination for staycations. One area that has seen astonishing growth in the last year is Whitby, where asking prices have increased by an astonishing 17%. This brings the average asking price of a property in Whitby to £254,218 – significantly lower than the Cornish competition. Despite this lower asking price, the typical average occupancy rate for a property in Whitby is 70% and average nightly rates are £128 a night. Using these figures gives us an average annual revenue of £32,704 which would put the average rental yield for Whitby at 12.9%.

Not far from Whitby is Filey, a fishing village home to a five mile stretch of sandy beach. Here, prices increased by 13% in the last year. However, the average asking price for a property in Filey is still far more affordable than much of the competition, making it incredibly accessible for those utilising the excellent UK expat and foreign national holiday let mortgage deals available at the moment.

With the popularity of holiday lets continuing to increase and properties getting booked up sometimes years in advance, holidaymakers are looking toward the hidden gems in the UK holiday market – and, at the current prices, Filey could well be the perfect hidden gem location.

Wales.
Wales is another region that is home to excellent options for those using a UK expat and foreign national holiday let mortgage. Areas like Porthcawl have increased by 14% to an average asking price of £307,051. Using Airdna’s figures again, we can estimate the average rental yield for this area to be around 12.8%.

Pwllheli similarly increased in asking price by 13% but to a much lower figure of £222,607. This presents excellent investment opportunities for an area with the draw of two Blue Flag beaches, a marina, golf course and a sailing club. It is also incredibly close to Snowdonia National Park. Using the same source and calculation as the previous areas we have examined, this would give an average rental yield of 15.1%.

The strength of holiday lets in Wales is evident in the fact that Wales has seen the biggest regional increase in the number of holiday let companies that have been established in the last year – up by 131%.

By Ulysses

Source: Ein News

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Staycation Boom? Assessing The Holiday Let Investment Market

There is reported to have been a ‘staycation boom’ in the UK during the pandemic. This would make sense; after all, international travel has been fraught with additional complexity and cost, if not being rendered completely impossible for long periods over the past two years.

Indeed, it was recently reported that 39% of Britons would be more inclined to holiday in the UK post-pandemic. But the appetite for staycations was already well established before we had ever heard of Covid-19. A quick glance back to 2019 reveals that while 93 million Britons jetted overseas, whilst 123 million chose to holiday in the UK, suggesting that the ‘boom’ is simply an uptick in a stable domestic tourism industry – one that is worth over £1.6 trillion.

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The strength of this industry, which is expected to grow further, has naturally impacted the property investment sector. Namely, more investors – particularly buy-to-let investors – are now considering holiday lets as a means of diversifying their portfolios. For those who fall into this camp, it is important to first understand the suitability of investing in holiday lets, including both the potential pitfalls and benefits that such an investment entails.

Reasons to be wary
Profitability – landlords acquiring a new property that they intend to use as a holiday let are likely to have paid an inflated price. Location is a very important factor in the success of a holiday let, and increased tourism in the last two years have pushed property prices up in tourist hotspots. Further, many properties will need furnishing and renovation to qualify as a holiday let. So, an initial outlay is common before income from holidaymakers starts to filter through; this could pose a potential barrier to some investors.

Running costs – with the cost of cleaning, energy and maintenance falling under the landlord’s remit, the regular turnover of guests creates some significant outgoing costs that can limit the money made on a property. Investors should also be aware that letting agents can charge between 20-30%, a necessary cost if they would prefer not to carry out the day-to-day management of the property. All these costs will eat into an investor’s yield.

Lack of guests – unfortunately, the old adage ‘build it and they will come’ is not a guarantee in the holiday let market. Despite sites like Airbnb creating easier platforms to market holiday lets, it is unlikely that properties will ever be at full capacity all year round. As holiday lets must be let for a minimum of 105 days to earn their potential tax benefits (more on this below), failure to attract guests could be disastrous to a property’s profitability.

Threat of regulation – with London capping short-term lets to just 90 nights a year unless planning permission is acquired, regulation in the holiday let industry is likely to increase. Areas like Cornwall and Bournemouth have seen incidents of ‘over-tourism’, and local councils may bring further regulation in to compensate.

Difficulty in finding finance – the relative insecurity of short-term lets makes borrowing from high street lenders difficult. As such, landlords could look for alternative financial backers. In doing so, lenders who underwrite on a case-by-case basis are essential to securing the best deal. Despite high-interest rates, variable discount rates and large down payments, investors and their brokers could consider their financial options as they hunt for the property itself in order to secure a deal that is most beneficial to their needs.

The benefits to be had
Those are the challenges, of which there are plenty. But that ought not to overshadow the potential upsides – again, there are numerous.

As many experts suggest, investment in different markets can maximise returns as each asset will react differently to market fluctuations. While it certainly does not guarantee against loss, diversification can reduce risk. The potential benefits listed below reflect why many landlords regard holiday lets as an increasingly interesting way to diversify their portfolios.

Tax benefits – if a property qualifies as a Furnished Holiday Let (as defined by HMRC), landlords are able to claim Small Business Rate Relief, thus avoiding council tax or business rates on their property and increasing the potential for profit. Furthermore, landlords can offset energy, cleaning and maintenance bills against their profits, reducing their tax bill further. If they choose to sell, they can even claim some capital gains reliefs, increasing the value of a holiday let as an asset.

Yields – as a result of these tax reliefs, and a rental price increase of 41% since 2020, holiday lets can make 30% more yield than a BTL property. With most aiming for a return of 8% annually and an average profit target of 30% (rising to 50% on properties without mortgages and letting fees), holiday lets begin to look like a credible alternative to an established portfolio.

Holiday home – the potential benefit that might have intrigued landlords the most during the pandemic is the opportunity to use a holiday let as a personal holiday home. To qualify for tax reliefs, holiday lets must be available to let for at least 210 days leaving landlords 22 weeks a year to use it themselves if they choose. With restrictions on international travel and a working from home order in place, the option to travel to a second home for free makes a holiday let an even more intriguing alternative to landlords.

Final thoughts
As restrictions ease and international travel continues its revival, it will be fascinating to see whether staycations remain as prominent, both in the media and with holidaymakers. For landlords considering a holiday let, they should weigh up whether they are capable of navigating the various pitfalls of the market. Those who are successful could certainly start to reap the attractive benefits a holiday let has to offer.

By Paresh Raja

Source: Finance Monthly

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Half-term staycation bookings boom with record numbers planning UK breaks

More Britons than ever are looking to holiday at home during the upcoming half-term break with bookings soaring for UK destinations.

Figures from holiday home rental agency Sykes Holiday Cottages revealed bookings for February half-term are up 27% versus 2020, with the number of people booking staycations surpassing pre-pandemic levels.

Meanwhile, bookings so far this year are up 22% compared to the same point in 2020, while there has been a 158% increase in bookings compared to the same period last year.

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In particular, Britons are booking staycations in Whitby, Ambleside and Bowness-on-Windermere, with these three locations witnessing the greatest volume of bookings for 2022.

Meanwhile, in a survey of 1,000 UK guests, Sykes found that 55% of British holidaymakers say they will still opt for UK staycations even when all international travel restrictions have lifted.

On average Brits are planning to take two staycations in the next 12 months, with almost half (46%) saying limiting their environmental impact is a key consideration when choosing a UK break over foreign travel.

Other factors for opting to holiday closer to home include the ease and convenience (52%) and getting to enjoy the outdoors (72%).

Graham Donoghue, chief executive at Sykes Holiday Cottages, said: “Bookings for our holiday lets this year are through the roof, showing that the staycation boom is here to stay.

“While bookings for February half-term have been record-breaking, we expect Easter and summer to be no different, and bookings are already coming in for autumn and winter thick and fast.

“Brits are looking to make the most of what our beautiful country has to offer and the self-catered option still appears to be a popular choice as contact with others can be limited.

“Clearly environmental considerations are also playing a role in the decision to staycation too. This is something we were starting to observe before the pandemic but it has really taken off over the last two years.”

By Brett Gibbons

Source: Wales Online

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