There are many fabulous locations across the UK for holidays, meaning increasingly more Brits are happy to stay in the country for their vacation. Whether you want a break in the countryside or to sunbathe by the sea, there are plenty of options.
With this in mind, Spot Blue International Property has listed its top eight reasons why 2020 could be the ideal year to invest in a holiday let on home soil:
1. A growing staycation market
VisitBritain states that domestic tourism currently accounts for almost 80% of all tourism activity in the UK. About £72 billion is spent annually by domestic tourists, or ‘staycationers’, in England alone.
Short breaks are becoming particularly popular, with the national tourist agency recording 35 million overnight holidays being taken between July 2018 and July 2019. This is a 2% increase on the same period the previous year.
2. Rising inbound tourism
More overseas visitors are also coming to the UK. This is bringing in revenue and creating a larger market for tourist accommodation. VisitBritain predicts the number of overseas visits to the UK to rise to its highest level ever this year, reaching 39.7 million. This will be 2.9% higher than in 2019. August 2019, in particular, was the highest month on record for both inbound visits to the UK and overseas visitor spending.
3. It’s greener!
Everyone is thinking more about their impact on the environment now, even when it comes to holidays. Holiday homes in the UK are an eco-friendly option for domestic tourists, as they take away the need to fly. On top of this, the most modern holiday properties have very low carbon footprints, due to the construction process and energy-saving qualities once built.
4. No need for foreign currency
Since the EU Referendum in 2016, the exchange rate hasn’t been on the side of British holidaymakers abroad. This also goes for property investors, as this weaker pound means everything costs more. Investors and tourists can avoid this issue by staying in the UK. It’s also a less stressful process to buy a property in your home country than it is to purchase abroad, especially if you aren’t fluent in that country’s language.
5. Easier travel
Being able to travel by car rather than having to suffer the queues and delays at an airport is another reason to holiday in your home country. You can also be more flexible with when you go and leave, as well as what you take with you. An even greener option is to go by train or coach!
6. Investment potential
Spot Blue International Property also highlights that holiday home developers in the UK, such as themselves can offer attractive terms to investors, as well as lifestyle buyers. It’s worth doing some research into such options if this interests you!
7. Tax benefits
Another perk of property investment, according to SBIP, is that furnished holiday lets in the UK are treated as businesses and come with favourable tax breaks and allowances.
They say: “As a guide, they attract capital allowances, which can be applied to furnishing the property, most of their running costs are tax-deductible, any profit can be used for pension contributions, capital gains tax incurred from them is low, and most will qualify for relief on business rates while being exempt from council tax.”
8. No language barrier
If you are not multilinguistic, then staying in the UK might be your preferred choice. It certainly is less stressful if you don’t want to make the commitment to learning another language or pay for professional help when it comes to the legalities of buying and letting abroad.