More British people are choosing to take their holidays in the UK and this has led to a strong demand for holiday lets.
According to the Sykes Staycation Index 2018, 74% of British adults took holidays in the UK in 2018 compared to 56% in 2017. Many of these people prefer to stay in self-catering accommodation.
Standard buy to let mortgages are usually based on assured shorthold tenancies and are not suitable for short lets. Specialist commercial mortgages known as a holiday let mortgages are available. Most do not allow occupation by the landlord, but some new mortgages have been introduced that allow the landlord to occupy the property for up to 60 days a year.
In a similar way to standard buy to let property, location is important. The Sykes Staycation Index 2018, names South West England, North Wales, Cumbria and the Lake District as the most popular regions for holidaymakers. In many areas, landlords may have vacant periods, particularly in out of seasons times. Administration and maintenance costs can be more expensive on holiday lets due to the high turnover of tenants. Taxation rules are more favourable for furnished holiday lettings than other residential property letting.
Figures from the Office for National Statistics revealed there were 39.2 million visits by overseas people to the UK in 2017 and this is forecast to increase. The combination of UK and overseas people holidaying in the UK should mean that demand for holiday lets remains high.