Posts with tag: holiday homes uk

Tourist Surge Boosts Demand for Holiday Lets in the UK

Published On: August 24, 2018 at 8:00 am

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The tourism sector in the UK is advancing, with visits by foreigners in the country increasing revenues and bringing positive news, not solely for the economy, but also for property investors with holiday lets.

Last year, 29.2 million overseas visitors came to the UK, up to 4% on the previous year, adding £24.5bn to the UK economy.

But tourism chiefs expect 2018 to be an even bigger year for UK tourism, with overseas visitors topping 40 million for the first time on record, thanks in part to the continued sterling weakness giving foreign holiday makers more money.

According to research from specialist mortgage lender Together, this tourism boom represents a major opportunity for UK property investors that specialise in short-term holiday lets, who can expect to make enviable yields of over 12% in some of the UK’s most popular tourism destinations.

Research reveals that in York, investors could achieve potential yields of 12.2% if they let their property, making the historic city one of the best places for a potential investment opportunity.

Head of Field Sales at Together, commented: “Tourists from across Europe, the US, Japan, China and Canada have a long-held fascination with Britain, our Royal family and cultural heritage, so it’s not surprising that they’re still flocking here en masse, despite continued uncertainty around Brexit.

“These tourists are looking for good quality accommodation, both in hotels and B&Bs but also in short-term lettings such as flats in central locations or holiday cottages by the coast, which are easier than ever to find and rent thanks to the growth of websites like Airbnb.

“With the number of overseas visitors to the UK increasing every year since 2010, demand for holiday lets has grown and grown, representing an extremely lucrative opportunity for savvy investors in the market for holiday properties to rent out on a short-term basis.

“Holiday lets are widely regarded as attractive investments as they generally achieve higher yields than longer-term buy-to-let properties and in most cases are exempt from the tax hikes which hit buy-to-let investors last April.”

While buy-to-let investors are seeing the phasing out of mortgage interest relief, owners of holiday lets can still deduct mortgage interest payments from the rent prior to calculating their tax liability, provided they can satisfy certain tests.

Holiday let owners also have the added benefit of being able to claim the full cost of furnishing the property, whereas buy-to-let investors are only able to claim for repairs.

Cornwall is Top Holiday Home Spot

Published On: April 24, 2015 at 2:49 pm

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More people in England and Wales are buying second properties for holidays in Cornwall than anywhere else, research has found.

In the South West, the county of Cornwall has 300 miles of coastline and lots of unspoilt countryside for visitors to enjoy, leading people to purchase a holiday home there.

Of all properties in the county, 6.2% (10,169) are kept solely for leisure, Direct Line research has revealed.1

Cornwall is Top Holiday Home Spot

Cornwall is Top Holiday Home Spot

Around England and Wales, 165,000 properties are classed as holiday homes, Direct Line found from analysing Census figures.1

The most popular areas from the data, such as Cornwall, Wales and Norfolk, have experienced growth in second homeownership in the last 20 years. This has boosted tourism in these parts, but can be worrisome for local residents.

Those in favour of people having second homes believe that they bring money and business into areas, whereas critics believe that second properties force house prices higher, which can push locals out of the area. Opponents also note that homes can sit empty for large parts of the year.

An estate agent from Padstow, Cornwall, Peter Olivey, says that the market there is competitive: “Cornwall ticks a number of important boxes for second homeowners with its coastal location and abundance of activities. It’s a true holiday haven without the hassle or cost of going abroad.”1

Behind Cornwall is Gwynedd in Wales, where the Snowdonia National Park can be found. 4.7% of all properties here are holiday homes.1

Number three is North Norfolk, which includes part of the Heritage Coast. Seaside spots such as Cromer, Sheringham and Wells-next-the-Sea can also be found here. 2.9% of homes are for holiday use.1

Out of the top ten holiday hotspots, East Riding, Yorkshire is the place where it is most difficult to buy a property.

This news arrives after the Liberal Democrats revealed proposals to give power to local authorities that would allow them to double the Council Tax on second homes.

Head of Select Premier Insurance at Direct Line, Nick Brabham, says: “Holiday homes are very valuable to owners as they are often a place to relax and spend quality time with loved ones.

“This time is often limited, which means it is essential to keep the property and its contents in top condition all year round.”1 

1 http://www.thisismoney.co.uk/money/buytolet/article-3052013/Top-ten-holiday-home-hotspots-revealed-Cornwall-top.html