Large numbers of Britons are considering becoming holiday let landlords to earn extra income from the continued popularity of UK staycations, new research shows.
Foreign travel chaos, the weak pound and the cost-of-living crisis will make the idea of holidaying in Britain more attractive to many tourists looking to get away this half term and over the festive period.
The appeal of British-based holidays – which soared in popularity during Covid as restrictions curbed overseas travel for many – is set to continue through the rest of the year, because of current economic instability and the pressure on household finances, hospitality experts claim.
And the survey of 2,000 UK adults by specialist mortgage lender Together, suggests people are looking to take advantage of this continuing trend with 24 per cent willing to at least consider becoming a holiday let owner, a figure which rises to 51 per cent of 18 to 34 year olds.
The biggest motivator is potential profits, with nearly half saying they would consider short-term holiday letting as a way of earning extra money. This is even more important to those aged 55 and over, with two in three driven by an additional source of income.
The next most important driver was for owners to maximise the use of property they already own and as a way of funding their retirement.
Meanwhile, Together commissioned a separate survey of 100 holiday let owners who rent out their properties through platforms such as AirBnB.
The poll found that extra income and convenience were the biggest positives of being a host. Nearly two thirds cite the additional income, while 35 per cent said it allows them to maximise the use their property assets, and 30 per cent that it makes them feel like an entrepreneur.
Marc Goldberg, commercial chief executive at Together, says: “Staycations have been in extreme demand – with bookings reaching all-time highs this past summer – and their popularity looks like it’s here for the foreseeable future. As our research shows, many potential investors are looking to short-term lettings as a way of generating more profit, and this comes at a time when rising mortgage costs are making the traditional buy-to-let market less attractive.
“We are also seeing UK families wishing to stay in the UK to control costs, avoid getting caught up in potential airport travel issues, or who just want to experience the UK’s beautiful countryside, so there are lots of new holiday letting opportunities cropping up as more people recognise the income benefits of becoming a full or part-time host.
“While the rewards are plenty, there are some considerations for anyone weighing this up. Mortgage applications for holiday let properties are not always available from mainstream lenders, so it’s worth potential holiday let owners talking to specialist lenders, who could help to turn their ambitions to becoming a host into a reality.”
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Keeping total control of our own property must be the key incentive in moving from the PRS to short term rentals.
Scotland's disastrous interventions since December 2017 ( made worse with the recent rent freeze) have pushed so many Scottish landlords out of the PRS that the SNP and their tame councils now need to limit short term rentals through further legislation.
Potentially higher revenue (not profit) from short term rentals is a factor but not the main factor.
This survey may be based on a number of incorrect assumptions. Firstly from the people who don't own rental properties of any sort, and think it's all very easy. Totally unaware of the costs, risks, rules and regulations and hard work involved. Secondly from anyone who thinks the "staycation boom" isn't over. People will be spending a lot less on holidays of any sort over the next couple of years and existing holiday providers (whether campsites. holiday homes, air bnb, hotels, b&b, whatever) will be competing for customers and offering cheap deals. They had a very good 2 years, but the wind has changed.
I have done both, holiday lets are hard work and you need to be very hands on.
When the economy is down, families tend to move down the holiday scale. So foreign travellers tend to stay in the UK, hotel guests move to self catering, self catering to caravan/camping etc.
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