Recent years have shown a huge increase in the market for UK self catering holidays. We believe that this trend is likely to continue and in this article we will look at two of the main drivers of this boom, namely:
- More people choosing to holiday in the UK, leading to …
More people buying holiday lets in the UK.
Why are more people staying in UK holiday lets?
- You only have to search ‘holiday cottages’ on Google to discover the abundance of holiday let properties across the country. Increasingly, we are seeing top quality holiday homes with an emphasis on luxury; deluxe features such as hot tubs and extra-special touches such as stylish interiors, ensure that guests have an exceptional experience whilst on holiday. With such improvements in the industry, UK holiday homes are becoming a popular choice for everyone.
- Popular online travel agents, such as Expedia and Booking.com, are integrating self-catering options into global travel plans; these platforms allow you to book flights, cars, hotels and cottages all in one place. What’s more, such websites spend billions per quarter on advertising, and over the last couple of years, we have seen more and more commercials for holiday lets.
- Whilst the uncertainty might not last forever, Brexit has raised concerns about travelling abroad; holiday makers are worrying about raising costs and new passport regulations, for example. To read more about Brexit’s effect on the holiday let market, click here.
- Trendy tech companies such as Airbnb have generated great publicity and increased general awareness of holiday properties across the UK. Never before has it been easier to find a trendy apartment in London or coastal cottage in Cornwall, for example. As a result, people have woken up to the option of staycations.
- There are so many wonderful places to stay across the UK! Whether you’re hoping for a beach escape, rural countryside retreat or city getaway, our own country has so much to offer holiday makers. To discover 10 of our favourite UK holiday destinations, click here.
Speaking about the recent boom in the holiday letting industry, Graham Donoghue, CEO of Sykes Holiday Cottages, said: “In recent years, Britain has enjoyed a staycation boom, with holidays abroad increasingly being shunned in favour of UK breaks.
“According to our latest research, two-thirds (66%) of us enjoyed a staycation last year, up from 56% in 2017. And with Brits planning to take three UK trips on average this year, the popularity of British breaks is set to continue.”
Tom Burdett, the Managing Director of Character Cottages, which focuses mostly on the Cotswolds, added: “The Cotswolds region continues to perform incredibly well, with demand from potential guests for quality holiday cottages continuing to prevail, despite a continuous supply of fresh, quality properties from savvy investors.”
Why are more people choosing to buy holiday homes in the UK?
Due to punitive tax changes on buy-to-let properties, we have seen a something of an exodus from the buy-to-let market; as a result, holiday lets are arguably a better financial investment. As HMRC currently considers holiday let properties to be a trading business, there is no limit on the amount of mortgage interest that is offsetable against a landlord’s profits. There are other tax reliefs for holiday home owners too, such as Entrepreneur’s Relief and inheritance tax. Read more about the buy-to-let vs holiday let debate here.
With Brexit looming on the horizon, potential holiday home owners are likely to deem it less risky to buy a holiday home in the UK rather than the EU. To read more about Brexit and holiday letting, click here.
Buying a holiday home is a brilliant opportunity to make a solid investment, thanks to the rise of staycations and increasing preference for holiday cottages over hotels. As a result, buying a holiday let can be a great investment with the potential to generate a good profit. To see our business model for holiday lets, click here.
If you’re considering going down the holiday letting route, check out our advice on how to get a holiday let mortgage, here.
Ready to create an account and get a free Initial Assessment? No problem, click here.
The information contained in this article is accurate at the time of writing, based on our research. Rules, criteria and regulations change all the time and so please speak to one of our Consultants to confirm the most accurate up to date information. Nothing in this article constitutes financial advice. Please always consult your accountant or solicitor for all financial, taxation or legal matters. Your home may be repossessed if you do not keep up repayments on your mortgage. Pure holiday let, buy to let and commercial mortgages are not regulated by the FCA.