Short-term lets
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Airbnb properties are increasing in holiday hotspots

A new map reveals how a staycation boom since the pandemic has seen the number of short-term holiday lets swell in some of England’s most popular tourist hotspots.

Coronavirus and subsequent travel restrictions for foreign trips led to a spike in demand for breaks closer to home – with new data now confirming the enormous growth the UK holiday rental market has endured in just three years.

Kent is among the places to have witnessed a surge in the number of rented holiday lets available in the county – with a leap of 22% between 2019 and 2022.

According to the data, which has been compiled by the short-term rental analysis firm AirDNA, Blackpool, Lincoln, the Peak District and Dorset are also among the areas to have experienced some of the biggest percentage growths that put them close to the top of the chart.

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Dorset’s increase has sent the number of available holiday homes it is registering into double figures for 2022 with 10,782 short-term lets.

Other popular locations also experiencing an increase in listings through companies including AirBnB are Norfolk, Shropshire, Gloucester and the Lake District. AirDNA says it is also noticing ‘an extension of seasonality’ meaning that there is also an increase in supply and demand in the low season as well as at peak times.

Far fewer places are witnessing a decline in property numbers with London, Cambridge and Windsor among a small handful, says AirDNA to have recorded a drop in the number of holiday homes available.

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In Kent, Whitstable is among the county’s most popular tourist destinations – having previously been ranked the eighth most popular town in the UK for second homes.

But down on the coast residents have long-raised concerns about the town being packed with rentals and people’s second homes.

A survey carried out by the Canterbury Green Party in September last year, which collected close to 170 responses, revealed that 87.6% of residents had concerns about the impact short-term holiday lets were having.

At the time, Airbnb owners defended their properties describing them as ‘vital’ to the local economy – among them Labour councillor and Airbnb owner Chris Cornell who, while in favour of more regulation, said the homes have an ‘important role in Whitstable’s economy’ as they are usually cleaned and serviced by local people.

Speaking at the time, he explained: “Like most Airbnb owners, it’s not big business and we don’t own thousands of them or taking billions of pounds in.

“Most of us are people trying to share the town we love and support local business.”

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Concerns over the potential for rowdy guests could prompt a government crackdown on short term lets, according to new anti social behaviour plans.

An action plan published by the Government on Monday aims to stop holiday properties ‘importing anti-social behaviour into communities’.

Referencing noise problems, drunken behaviour and disorderly conduct, the plan promises the creation of a new registration scheme that would provide councils with the data to identify short-term lets in the local area.

If any short-term rental property proved ‘problematic’, local officials could then take action against its guests and owners.

Communities Secretary Michael Gove earlier this month expressed concerns about the impact of short-term letting on local areas, promising to make changes aimed at restricting “the way that homes can be turned into Airbnbs”, amid concerns about problems with holiday lets preventing younger workers from living and finding a job near to home.

By Lauren Abbott

Source: Kent Online

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Holiday let plans for farmland near Burton-in-Lonsdale

PLANS to develop working farmland at Burton-in-Lonsdale to create holiday accommodation have been submitted to Craven District Council.

Proposed by John Carr for land to the south west of Burton is eight new holiday units, a site entrance, service area, access roads, parking and landscaping.

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Other applications submitted to the council include: The part demolition and conversion of existing store/garage and piggery at Lower Windhill Farm, Cowling Hill Lane, Cowling to home office and sauna, and a single storey rear orangery with glass connection at 4 Nookdale Cottages, Dumb Toms Lane, Ingleton. Also proposed is installation of an electric vehicle charging point, and a new porous cobbled driveway at 8 New Hall Farm, Colne Road, Cowling; External modification including resurfacing the existing parking area at Greenfield House, Low Lane, Embsay, raising the retaining wall and making alterations to the patio.

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Planned for Procter House, Kirkgate, Settle, is the change of use of ground floor office and first floor residential accommodation to create two dwellings, and associated alterations.

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Craven District Council has applied for permission to erect a new metal sign over Victoria Street, Skipton at a height of around six metres (19 feet). The sign will say ‘canal quarter’, will resemble traditional narrow boat signage and is aimed at improving the visitor experience.

By Lesley Tate

Source: Craven Herald

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Return of the ‘holiday home mortgage’ as families favour British breaks over Europe

Mortgage lenders and property investors are backing a staycation boom this year as families favour UK holidays over expensive trips abroad.

The number of mortgages available for holiday let owners has more than doubled since October amid renewed confidence amongst banks and building societies.

Investors can now choose from 411 deals, up from 173 three months ago, according to analyst Moneyfacts, and the number of lenders in the sector has jumped from 26 to 34.

Increased competition has also driven down borrowing costs for investors – the average fixed interest rate on a holiday let mortgage has fallen from 7.47pc to 6.17pc in the same period. Although costs remain inflated in comparison to the beginning of last year, when the average fixed rate was 3.92pc.

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Joe Stallard of House and Holiday Home Mortgages, a broker, said the price war between lenders came as investors who would have traditionally chosen to purchase a buy-to-let property instead turned to the holiday let market.

Mr Stallard said: “We’re definitely seeing more serious investors right now. There is increased demand for city-based properties, such as in Cardiff, York and Liverpool, and clients are keen to invest in properties that can be let all year round.

“Interest in the traditional areas like Cornwall, Devon and the Lake District remains strong, but investors are looking for more opportunities nationwide.”

The number of available holiday lets in the UK jumped by 14pc year-on-year to almost 340,000 in December, up from just under 297,000 in the same month in 2021, according to analysis by data firm AirDNA.

A surge in demand for staycations during the pandemic inflated accommodation prices and nightly rates have continued to rise despite a resurgence in foreign travel. The average daily rate for a holiday let in the UK was £167 last year, almost a third higher than in 2019 and a 14pc rise since 2021, according to AirDNA.

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More British households are expected to holiday in the UK this year rather than pay for flights as the cost of living crisis shows no sign of abating. The share of households planning to take long-haul flights has dropped from almost a fifth last year to 14pc in 2023, according to a survey of 2,000 people by lender Paragon Bank.

Meanwhile, the proportion of people intending to holiday in the UK has jumped from almost a quarter in 2022 to 28pc in 2023.

But holiday let investors will need to contend with stricter rules around tax and occupation this year.

Property owners in England who make their rentals available as short-term lets for 140 days a year can currently claim they are a small business, and therefore pay preferential business rates instead of council tax.

But the loophole will be tightened in April, when a property will only qualify for business rates if available for 140 days a year, and was actually let out for short periods totalling at least 70 days in the previous 12 months. New holiday lets will be liable for council tax until the property meets the new eligibility rules.

By Rachel Mortimer

Source: Telegraph

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The weak pound is set to drive demand for UK staycations

As the cost-of-living crisis continues apace, and the value of pound remains low, affordable staycations are back on the agenda with people choosing to holiday near UK tourist hotspots, instead of taking trips abroad. With this in mind, AGO Hotels is looking at what this means for its own business and the wider UK hospitality market.

The latest increase in interest rates is the highest single jump in 33 years. With this at the forefront of minds for the majority of the UK population, affordability has become the focus. Travel, much like most other commodities has substantially risen in price. As a result of the cost-of-living crisis, which is severely impacting household budgets, it is very likely the UK economy / budget hotel sector will see an upsurge in staycation demand. For those opting for a staycation they will be looking for value, balanced with quality and location. Location plays an integral part of the decision-making process and knowing there will be suitable activities and attractions available so the guests can make the most of their holiday.

Hoteliers must now more than ever try to capitalise on any and every opportunity, endeavouring to demonstrate the benefits of their location from the very first time the guest views the hotel online to when they work through the door. This could, arguably should include offers and packages for guests at the local attractions, “stay in our hotel and receive a discount or complimentary entry to local attractions”. Pre-arrival communication with the guests, and again on arrival, if it is relevant, provide guests with information on how they can make the most of their stay. As far as is relevant to the style of hotel, guests will expect the very best stay and in times of economic uncertainty, hoteliers must not lose track of how important a straightforward, positive experience is for guests, achieved through ease of booking, seamless check-in and a top sleep experience.

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As well as the weak pound having an impact on the movements of UK residents, we are seeing how it is driving change from overseas. There has been a recent increase in tourism as overseas opportunistic travellers are looking to capitalise and take full advantage of the weak pound, which is providing a welcome boost for many hoteliers. Some hotels in key locations are reporting significant increases to their occupancy level and tour operators have been calling Quarter 3 2022, their best trading period for bookings since October 2019. This is particularly true in the case of tourism from the US. The US has always been one of the strongest feeder markets of tourism into the UK and there is every sign this will continue if the costs of flights remain manageable and there is no further disruption at airports as we saw in the early part of summer.

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At AGO, we expect to see the benefits of staycations across our entire portfolio. Those hotels closer to attractions and visitor experiences, and in more leisure destinations will clearly have a greater demand, though with the weak pound attracting the foreign guests there will likely be demand from a broader pool of guests. With very competitive room rates we remain committed to providing those wanting a trip away this winter, a cost-effective comfortable option.

While we do try to create growth in occupancy, we must not lose sight of the significant impact caused through the economic crisis the UK is experiencing. This is impacting room rates, and with ever increasing inflation, costs of running the business are higher than ever. The impact of paying higher wages, higher supplier costs and a raft of other increases in costs means the conversion to the bottom line is under significant stress. Remaining profitable and staying open to welcome guests is ever more uncertain. As we move into winter, and the quieter season for the UK hotel market, the coming months will be very telling.

By Lionel Benjamin

Source: Hospitality Net

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North Wales climbs staycation league as people take short breaks to escape ‘gloom and doom’

A Travelodge survey ranked the region as the UK’s second most popular ‘rural’ destination for British holidaymakers in 2022.

The trend for short-stay trips in Britain is fuelling the popularity of North Wales as a staycation destination, according to a Travelodge study. With fewer people taking a traditional two-week holiday, regions close to big urban areas are attracting increasing numbers of visitors.

A survey of 2,000 holidaymakers by the hotel chain found that North Wales was the second most popular “rural” destination for Brits this summer, headed only by the Lake District in England. The findings reflected the pull of Snowdonia’s mountains but, for many, the region’s beaches were just as big a lure.

Travelodge’s latest Travel Index estimates 65% of Brits took their main holiday at home this year. Of these, 60% have so far taken three staycation breaks and may yet take another.

Around a third were families who usually take a main annual holiday but who instead took shorter UK breaks so that they could enjoy different experiences and locations. A quarter said they opted to take several UK short breaks as it “gave them something to look forward to against the gloom and doom of the global crisis”.

One big surprise in the survey was the appearance of Blackpool at the top of the list for “coastal” holidays – a position traditionally occupied by Cornwall and Devon. Taking second spot was Bridlington, Europe’s “lobster capital”, followed by Brighton.

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Travelodge spokesperson Shakila Ahmed believes the holiday trade is becoming more eclectic as people seek out different things to do closer to home. “More Britons are exploring hidden holiday gems that are on their doorstep than ever before,” he said.

“Record heatwaves this summer have also inspired Britons to take more spontaneous breaks to the great British countryside such as North Wales.”

For a third of Brits who opted for short breaks this year, they did so in order to catch up with family and friends. Almost as many saw short breaks as a way of keeping their children entertained during the summer school holidays.

As always, the weather was a big influence, with 29% of holidaymakers choosing to take spontaneous staycation breaks because of the summer heatwaves. Perhaps for the same reason, traditional seaside jaunts remained the nation’s favourite choice of holiday (35%) in 2022.

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Travelodge, which has 28 properties in Wales, estimates the UK staycation market was worth £30 billion in the year to date. So far 42% of Brits have been on holiday this year and feedback suggests this is one luxury they are unwilling to forego despite the current cost-of-living crisis.

Next year, this assertion will be sorely tested. Operators, hoteliers, B&B owners are fearing the worst with tourism expected to bear the brunt of household cutbacks. A fifth (21%) of Brits admitted it was just too expensive for them to holiday abroad this year.

Ironically it was the global financial crisis that helped underpin the domestic holiday sector this year. Travelodge’s latest Travel Index found 60% of those who choose not to travel abroad this summer, did so because of fears over airport chaos and flight delays. A further 28% of Britons holidayed at home because the weather here was considered superior to places like Dubai where temperatures are too oppressive.

Shakila Ahmed expects the trend for short breaks to continue. “With so many places to see and so little time and money, the traditional two-week holiday is on the decrease and a lot [of] shorter breaks, particularly in North Wales, are on the increase,” she said.

By Andrew Forgrave

Source: Daily Post

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Continued appetite for staycations offers boost to holiday let

Buy-to-let investors are always keen to look for new opportunities, and over the last few years there have been few bigger opportunities that the boom in the holiday let arena.

We polled brokers recently to get a better insight into their own experience of the holiday let market, and it’s clear that the last couple of years have been a period of significant growth for this sector.

More than half (55%) of intermediaries said they had written a holiday let case over the past 12 months, while more than 84%said they had seen an uptick in holiday let enquiries since the start of the pandemic.

What’s more, almost half (48%) saw a jump in enquiries since restrictions had been lifted.

It would be easy to assume that this interest is solely down to the pandemic. With overseas travel all but impossible, it was understandable that there was then a sharp rise in interest in staycations. People need to take a holiday, after all.

Little wonder then that investors recognised the increased interest, and took advantage by adding holiday lets to their portfolio.

However, that train of thought would suggest that the staycation trend has passed. After all, now that we can holiday abroad once more, will there still be the demand for short-term lets?

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Demand for domestic holidays

The reality is rather different, however, with a host of studies revealing that the appetite among Brits to have at least one holiday on domestic shores remains strong.

For example, the latest study from VisitBritain found 59% of Brits plan to take at least an overnight trip domestically over the next 12 months, compared to 44% who are going to head overseas at some point.

Notably, one in three intend to take more UK trips in the next 12 months than the preceding year.

That’s a pretty strong statement that interest in domestic trips may have been given a helping hand by the pandemic, but that demand is far from dwindling.

Throw in the fact that improved international travel means greater numbers of visitors from abroad heading for our shores, providing more potential tenants for short-term lets, and it’s perhaps not surprising that landlords remain keen on investing in these properties.

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The role of brokers

Mortgage intermediaries are crucial allies for all property investors, irrespective of what form of property they are looking to put their money into.

As a result, brokers will inevitably be hearing from clients in the months ahead who are interested in the holiday let market and how to go about finding finance.

This represents a terrific opportunity for brokers. Holiday let may have traditionally been seen as something of a niche area of the market, a specialist segment which they may have overlooked – not anymore, so it’s crucial brokers get to grips with the subtle ways in which holiday let products differ from traditional buy-to-let deals so that they can help those clients secure the funds they need to add to their portfolios.

Flexibility from lenders

Lenders have a big role to play here. Firstly, across the board we need to do a far better job in educating brokers, helping them understand the intricacies of these holiday let products and how they can support clients in a range of different circumstances.

But we also need to do a better job in highlighting the decision-making process. At HTB for example we put our trust in our manual underwriting process; there’s no relying on automated decisions, which risk unfairly excluding clients who could make a great success of holiday let investments.

Instead, flexible lenders are able to get to grips with the facts about each and every case, nail down the crucial details so that they are able to provide a more informed decision.

The holiday let market has already grown substantially and looks set to play a more important role in the future. It’s therefore vital for brokers to make the most of this opportunity, and for lenders to support them in doing so.

Source: Financial Reporter

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Lancashire holiday park launches new activities thanks to £3.5m investment

Bosses at a Lancashire holiday park have been celebrating the launch of their new high adrenaline activities following a massive £3.5million investment.

The activities, which include freefalling experience, “The Jump”, as well new climbing walls, golf course and segways, were unveiled at Haven’s Marton Mere Holiday Park near Blackpool earlier this week.

Olympic gold medallist Will Satch MBE helped reveal the new additions to the holiday park, which, thanks to a £3.5million investment and work over the winter months, also includes indoor and outdoor facilities as well as new accommodation.

Ahead of what’s expected to be another busy summer, the demand for fun and exciting outdoor activities is higher than ever, and The Jump, which was first introduced to Haven’s Craig Tara park in South Ayrshire, Scotland, in 2019, offers guests a thrill-seeking experience by freefalling from two different height platforms onto a massive airbag.

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Officially launched on Monday in front a crowd of eagle-eyed spectators, Team GB athlete Will was in high spirts as he tried out all the new activities.

The rower, who won a bronze medal at London 2012 before claiming gold at Rio 2016, is no stranger to competitive challenges, and said: “I’m such a big fan of adrenaline filled experiences so for me, even on a holiday I want to be active.

“There is so much to do and even as an adult these activities are tons of fun, so I can definitely see why children are eager to try it this summer.”

Despite Will being a highly decorated rower, you don’t have to be an Olympian to get involved in the new activities at the holiday park.

Guests can get on two wheels and explore on segways or bikes, or grab a greater view of the park from the climbing wall.

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General Manager at Marton Mere, Keith Robson, said: “It was amazing to see so many people supporting the launch of our new activities today.

“We’re very happy to be able to bring these fun and exciting additions to the park and we can’t wait to see our guests enjoying them throughout the summer.”

In addition to the new activities, Marton Mere has invested in other areas, with more than 70 new pitches for holiday homes and a whole new location on the park site in Lakemere View near the Marton Mere nature reserve.

There is also a new Burger King as well as new outdoor dining areas providing plenty of space for guests to enjoy the park.

The investments have led to an additional 35 new job roles too, which provided a huge boost to the local area.

By Amy Farnworth

Source: Lancashire Telegraph

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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

Wild camping staycation
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Staycation: The only places in the UK where wild camping is ‘officially permitted’ named

Wild camping is many Britons’ dream staycation and can be a great way to cut down on costs. However, camping in the wrong area could see Britons hit with a heavy fine.

The UK has some of the world’s most beautiful countryside and its many fields are perfect for camping.

However, there are also laws that prevent Britons from pitching up their tent wherever they want.

A spokesperson from Pitchup said: “Dartmoor National Park is the only place in England where wild camping is officially permitted.

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“However there are still restrictions on where you can set up camp.”

With its gorgeous open moorland and deep valleys, Dartmoor National Park offers plenty for all the family.

Its famous wild ponies can be spotted grazing on the moors and archaeologists think they may have been here for over 3,500 years.

Tourists can backpack camp on some areas of Dartmoor and will need to carry their own equipment.

They can stay for one or two nights at a maximum and should check which areas are allowed before setting up.

Tourists are also asked to stay out of sight and should use lightweight tents that blend into the landscape.

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They should never light fires or leave waste behind and should take everything home in their backpack.

The park states: “If you worry about carrying your rubbish home, need a bin or a toilet – then this isn’t for you – use a campsite.”

Wild campers can also try asking a landowner’s permission if they want to set up camp in other areas of England.

The rules in Wales are similar to England and wild campers will need to seek landowner’s permission first.

However, the rules are slightly different in Scotland. The Pitchup spokesperson said: “In Scotland, right-to-roam laws are still in place, which means that wild camping is still legal.

“You can set up and camp in certain areas across Scotland as long as you follow the Scottish Outdoor Access Code.

“However it is important to note in places like Loch Lomong and the Trossachs National Park, you are required to purchase a camping permit between the months of March and September.”

By ESTHER MARSHALL

Source: Express

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Best places to buy a holiday home in the UK revealed as Wales is named top staycation spot for investors

We reveal top tips for households looking to buy a holiday home to let.

Second home ownership has come under fire but with more and more Britons opting for a staycation, holiday letting has the potential to help local economies and make property owners money, a new report says.

Sykes Holiday Cottages found properties in Blaenau Gwent in South East Wales were some of the most popular while in England Tyne & Wear and Lancashire were prized destinations for holidaymakers.

The Isle of Bute in Scotland was also popular, with Sykes’s Holiday Let Outlook Report also using insights from rental data and analytics company AirDNA.

The holiday let agency, which has over 22,000 homes on its books, said bookings were up 35 per cent compared with 2019 and enquiries from prospective holiday let investors had risen dramatically in 2022.

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The pandemic also appeared to have encouraged many people to let out their home to holidaymakers with 25 per cent of owners choosing to start letting their home out 2020.

The report also found that in 2022, compared with 2021, new owner enquiries from prospective holiday home investors had increased by 78 per cent.

With a rise in holidaying at home, Sykes’ report revealed the average holiday let owner earned £28,000 in revenue from their holiday let last year, up from £21,000 in 2019.

It added having access to luxury amenities such as open fires could boost a rental property’s earnings by 19 per cent, while a rise in pet ownership fuelled by the pandemic meant pet-friendly properties brought in one per cent more income on average.

Graham Donoghue, chief executive of Sykes Holiday Cottages, said: “The shift towards staycations had already begun pre-pandemic, Covid has just accelerated this trend.

“Although international travel is becoming easier, we now have new types of staycationers.

“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.”

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Where to buy

Seaside towns posted the strongest pandemic house price performance according to estate agent comparison site, GetAgent.co.uk

Its research showed that seaside towns had an average price of £340,339 and had seen the largest annual increase in value at 13 per cent, as well as the largest increase during the pandemic, up by 21.2 per cent.

“We ditched the nine to five to become holiday homeowners“

Adrian and Anita Jennings, 56 and 58, are owners of two holiday lets in Southwest Wales.

The couple own two cottages next to each other in the hamlet of Cwmbach, Kingfisher and Red Kite.

They said: “We left our 9-5 office routines back in 2015, and we haven’t looked back.”

The homes consist of a semidetached annex, formerly a village post office, plus an additional converted outbuilding.

They also have five-acres of woodland garden and we are near to Pembrokeshire, Carmarthenshire and Ceredigion.

The couple bought the original site for £340,000 back in 2015, spending around £25,000 converting it into two holiday lets plus a third property for them.”

Holiday lets – how to invest in one

Matt Kelly said anyone considering buying a holiday let should do their research.

“Even before the pandemic, we were seeing dramatic changes across the buy-to-let landscape with holiday lets steadily increasing in appeal – more so than for traditional long-term rental properties – as they allow people to tap into the UK’s many tourism opportunities.

“This is a trend we expect to continue and we expect the holiday let market to remain fairly stable in the years to come. However, there will discounts out there which may be worth considering, particularly if investors are looking to purchase out of season.

“Buyers may be able to get an even better deal by finding a property which is in a poorer condition and needs restorative or structural work.”

What to consider before investing

For anyone considering a holiday let investment this year, there are a few pros and cons to consider first:

  1. Opportunity for higher rental yields: For landlords, holiday lets had already begun to grow in popularity well before coronavirus, mainly due to the significant tax advantages as they are classed by HMRC as a business (rather than an investment).

Combined with the potential for bigger profit margins and a much higher return per-night, now could be a great time to invest in a furnished holiday cottage and rent it out to paying customers on short-term lets.

With so much demand for staycation destinations this year, landlords and second homeowners (should they wish to let out their property) can relax knowing that this process has become much simpler to manage online.

With the likes of Airbnb and other options helping you get your property listed, you can get yourself set up and ready to welcome your guests with minimal hassle.

Getting a mortgage

For those considering a second home, there may some hurdles to overcome if trying to obtain a mortgage via traditional banks or high street lenders due to the increasingly tough affordability criteria.

For example, lenders will first need to see strong evidence that you will be able to keep up with the mortgage repayments on your second home – especially if you have a mortgage for your current property. Lenders could also refuse an application depending on the location of your holiday home – especially if you’re buying a place in an area that has risk of flooding – like in the Lake District.

Costs involved

Unlike standard buy-to-lets, holiday lets have to be managed for regular visitors and therefore, there may be higher costs, such as paying for a weekly cleaner or managing agents’ fees, so these are things that consumers should consider before making any rushed decisions.

In addition, if you open your home to paying guests you’ll need to be prepared for potential damages and repairs being needed more regularly – especially after weeks of wear and tear following the summer holiday season.

By Samantha Downes

Source: iNews