While the pandemic may have accelerated the rise of staycations in the UK, there are a number of other factors at play that suggest the boom in staycations are here to stay!
One of the most obvious drivers for the staycation boom are the travel restrictions implemented because of COVID-19. The combination of frequent changes to the Government’s traffic light list, the need to quarantine, purchase expensive PCR tests and fears of new variants has seen many Brits opt to remain in the UK.
A drop in the value of sterling since the Brexit vote in 2016, has meant that our spending power in Europe has taken a hit! In addition, longer queues at passport control and stays in the Schengen limited to 90 days per every 180 has put many Brits off.
Increasing awareness of climate change has resulted in a growing number of holidaymakers choosing to reduce their carbon footprint by avoiding air travel and remaining in the UK for their holidays.
Changing Lifestyles and Values
Multi-generational or ‘3G’ holidays have grown in popularity as more people value time spent with their families.
It has been estimated that 3.2 million households have welcomed a new pet since the start of the pandemic, meaning many Brits are looking for pet-friendly accommodation so their furry friend can join the vacation.
An increase in remote working has seen a number of people choosing to work remotely away from home, perhaps in a rural location or seaside resort.
Before investing in a holiday let are a number of factors that potential investors need to consider.
Certain councils have restrictions in place for short-term lets which may impact the ability for the owner to rent the property as a short-term let.
The running costs for a holiday let can be higher, particularly if the management of the property is outsourced to a holiday operator, who will take a fee. It is also worth considering that wear and tear is likely to be higher with multiple occupants coming and going.
Without the security of a tenancy contract that comes with a traditional buy-to-let, holiday lets can be vacant for long periods of time - particularly in low season.
Utility bills and TV packages will need to be covered by the property owner at a holiday rental, while these would normally be covered by the tenant at a traditional buy-to-let.
Obtaining a mortgage for a holiday let
At West One, our specialist buy-to-let product range is available to amateur and professional landlords looking to finance complex transactions including Holiday Lets.
Key features of our Holiday Let mortgages:
If you have a client looking to purchase or remortgage a holiday buy-to-let, please contact your BDM or the broker support team on 0333 123 4556 or email firstname.lastname@example.org.
Generic information is contained within this article and each individual’s tax affairs are different, further advice should be sought from an accountant.