South East England is a holiday rental hotspot commanding average yields higher than any other region of the UK, analysis by lender Hodge has found.
According to Hodge’s holiday let mortgage analysis, during the high season in summer, it costs an average £1,910 a week to stay at a property in South East England.
This is followed by the South West where a week’s stay costs £1,769 and East of England, where the average stay is £1,569.
In Wales, renting a holiday home for a week can amount to £1,418, while a holiday property in North West England can generate £1,302.
Scotland is the cheapest part of the UK to vacation in during high season, with average weekly rents at £1,222.
Overall, in the UK the average rental yield is £1,556 at high season, £1,107 at mid-season and £795 in low season.
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Emma Graham (pictured), business development director at Hodge, said: “When brokers and intermediaries come to us with a holiday let application we ask them for the average rental yield for that property, from that we can calculate how much an average rental for that region is during the different seasons.
“What our data shows is there has been some slight fluctuation in the market over the past year, with rental yield prices going up and down marginally, but that areas like the South East and South West are always the most profitable when it comes to running a holiday let business, as rental yields are always high.”
Graham added: “It will be interesting to see how the rental yields will change over the next 12 months as restrictions on travel ease and more people are able to holiday abroad.
“What is clear to see is holiday lets have been hugely popular in the past six months, not only in terms of sales but also in terms of the rental owners are able to charge, and holiday lets have been a sound investment for many if they have been able to buy one at the right time and at the right price.”
By Shekina Tuahene
Source: Mortgage Solutions
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