holiday lets

Hotel transactions worth more than £2bn – including two notable deals in Plymouth – took place in the region in 2021, as the staycation boom attracted investors to the lucrative holiday market.

Across the region hotels were hot property with global real estate advisor Savills revealing the region saw £2.04bn changing hands as hotels were bought and sold.

And the South West hotel market continued to be in demand with investment volumes climbing 8.2% compared with 2020, to £86.1m, according to Savills.

The company represented more than 40% of hotel assets transacted in 2021 in the South West.

Key deals include the sale of Treloyhan Manor, in St Ives, Cornwall, to Manchester-based developers for more than £3m off a guide price of £1.75m,

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The Dial House, in Bourton on the Water, Gloucestershire, was sold to overseas investors off a guide price of £2.5m.

James Greenslade, director in the hotel capital markets team at Savills Exeter, said: “The regional hotel market has performed exceptionally well, driven by consumer demand for staycations.

“While accelerated by the pandemic lockdowns, this is a theme that will continue as holidaymakers seek out more environmentally friendly and sustainable holidaying, a trend that was emerging pre-Covid.

“The South West has some of the best holiday locations in the UK and investors are drawn to locations such as Cornwall and Devon where long-term demand for leisure-led hotels is expected to be high.”

Other notable deals in 2021 included the purchase of Welbeck Manor pile, at Sparkwell on the edge of Plymouth, a manor house built by Isambard Kingdom Brunel.

New owners Paul Stone and Paul Yarnley, and their families, have invested a “substantial amount” into a complete revamp of the property which was to reopen as a hotel and fine dining restaurant after an expensive renovation.

Also in Plymouth, Grade II* listed Langdon Court hotel was bought by Britain’s “jean queen” fashion designer and her restaurateur husband to be reopened as a “top level” venue.

Donna Ida Thornton, founder of London’s Donna Ida fashion brand, and her spouse Robert Walton purchased the 16th Century Jacobean manor, which had been closed for 18 months after the previous owner went into administration.

The purchase price of Langdon Court, in Wembury, has not been revealed, but it was put on sale in 2020 with a guide price of £1.85m.

Also in 2021, the historic and award-winning Mill End Hotel, situated in Dartmoor National Park close to the town of Chagford, was sold after going on the market for £2.1m

The hotel was purchased from Nick and Tara Culverhouse by Alex Horsfall, an experienced operator who already owns The Valley, situated between Truro and Falmouth in Cornwall.

Meanwhile, North London’s Amayo Properties Ltd bought the closed Richmond Hotel, in Torquay, from hospitality company the UK Holiday Group, based in Norwich, off a guide price of £950,000 and said it will reopen it to guests.

ByWilliam Telford

Source: Plymouth Herald

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Increased awareness of the staycation sector and the focus on sustainability mean holiday lets will keep attracting landlords, says Andy Virgo of LendInvest.

For obvious reasons, the UK AirBnB and staycation industry has boomed in the past couple of years as uncertainties around travel have kept Brits looking at home for their getaways.

This has rewarded portfolio landlords, who have diversified their properties and found yield in the holiday-let market.

As a grey and cold start of the year is lit up by more and more holiday adverts on our TVs and phones, we are looking again at what holidays we could be enjoying this year.

In keeping with the past two years, the market could maintain its rapid growth as travellers continue to holiday at home; alternatively, fewer travel restrictions could reshape the industry again as people take the opportunity to start going abroad.

After two years of rapid change, what could be in store for the market in the next 12 months?

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The year ahead

Recent history has raised the awareness of the stay-at-home holiday sector a huge amount, in particular the diversity and range of properties available for short-term holiday lets.

This should put the market on a good platform, even with (potentially) increased foreign travel available as the year progresses.

A focus on sustainability and reducing one’s carbon footprint is happening across all areas of people’s lives, and studies are showing travellers keen for ‘green’ holidays, which all plays in favour of the ‘staying local’ holiday market.

Increased foreign travel can be a boon for the sector in this country as well, with more travellers coming into the UK.

The role of the lender in supporting holiday lets

The main differentiators — aside from rates — are how lenders choose to value holiday lets and the flexibility of their criteria.

As more landlords look to diversify their portfolio with these types of let, lenders must be responsive to the needs of the market to support them.

Bricks-and-mortar investments are solid for the long term, which is why the relative ‘gamble’ of a holiday let is a step many are willing to take because the long-term rental and housing markets remain strong.

If demand slips, remortgages to long-term rental deals or selling the home in a buoyant market remain successful outcomes, which lenders should be willing to facilitate.

There remains opportunity for landlords willing to explore holiday lets as a means of diversifying their portfolio.

After two frantic years for the market, we can expect some realignment as things approach a new normal in 2022. But the need for high-quality accommodation — for short or long stays — won’t go away.

Source: Mortgage Strategy

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Picturesque Bideford has become a staycation favourite, travel firm Snaptrip has named it the most popular choice for customers so far this year.

Part of its appeal lays in its proximity to outstanding nature and landscapes, making it the perfect getaway destination for stressed Londoners and other city-dwellers. It allows easy access to some of the region’s most stunning beaches, as for example those at Westward Ho! and Croyde Bay.

For those interested in getting off the mainland, Lundy Island is another close-by destination that can easily be reached from Bideford. It is home to some rare animals such as puffins and has itself enjoyed a massive increase in visitors over the last couple of years.

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Bideford itself has lots to offer too, though. Particularly lovers of literature will likely be excited by its many cultural offerings. The author Charles Kingsley lived here and the charm of the town is clearly visible in his works. The nearby village of Westward Ho! even got its name from one of his novels!

If tourists want to do a bit of shopping, visiting historic Pannier Market, which is a favourite among locals and offers a wide variety of locally made products, is a great way of doing so. Of course, you can also find well-known high street stores in the town centre, as well as a number of quirky independent shops, making for a pleasant shopping experience.

It is great to see Bideford’s tourism offering doing so well, meaning more people will get to know the area and its many beautiful landscapes and exciting opportunities. Given that places two and three in the ranking are occupied by ever-popular Newquay in Cornwall and Keswick in the Lake District, Bideford’s first place truly shows its outstanding quality and appeal.

By Luisa Rombach

Source: North Devon Gazette

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A new study by the research team at WeThrift has uncovered the most romantic staycation destinations in the UK and Lewes has landed in the top five.

According to the research, the East Sussex town landed in fourth place with an overall score of 58.4, boasting 79 things to do, as well as being within a 30-minute drive to the nearest beach.

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The town also has 66 walking trails, eight florists and 10 jewellery shops within a five mile distance.

Lewes tanked fourth in the list – behind Henely-On-Themes, Truro and Windsor.

Windsor, Berkshire is officially the UK’s most romantic staycation destination with an overall score of 64.7 out of 80. The town is home to Windsor Castle, an official residence of the British royal family, as well as the royal Windsor racecourse and a Legoland resort, plus as many as 135 more things to do.

By Frankie Elliott

Source: Sussex Express

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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

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

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.

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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