A quarter of Britons are considering becoming holiday let landlords to earn extra income from the continued popularity of UK staycations, new research shows.
Foreign travel issues, the weak pound since Brexit and the cost-of-living crisis may make the idea of holidaying in Britain more attractive to many tourists looking to get away this summer.
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 holiday let mortgage lender Together, suggests people are looking to take advantage of this continuing trend with 24 per cent considering 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.
However, more than one in five would be put off because they think they wouldn’t be able to get a holiday let mortgage, while other barriers included the time investment to get it set up and running and renovating the property to a high enough spec to make their listing successful.
Meanwhile 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 a third say it allows them to maximise the use their property assets, and 30 per cent that it makes them feel like an entrepreneur.
Former estate agent Marc Goldberg, commercial chief executive at Together, says many investors may see an opportunity in short-term holiday lets, which can provide greater yields than traditional longer-term buy to lets.
Goldberg adds: “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.”
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On the other hand, if one frequents fora for holiday let owners (as I do), it is clear that demand is down this year and (at least in traditional holiday destinations like Cornwall) supply is up due to landlords and investors moving to the short let sector to escape the punitive tax regime on BTL. A good income is by no means guaranteed and some are already considering leaving that business.
Emily
That's true of south and west Wales, their was a flip due to staycations and now a slump.
We are looking for any investment OTHER than standard BTL 🫤
HI Simon. we source and sell residential opportunities ideal for STL, check out our site at residential-estates . co . uk or feel free to DM for more info...
Jason
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