In 2016, holiday lets generated an average of £22,281 in rental income compared to the average buy-to-let rental income of £11,052. This is according to figures by holiday let experts Second Estates, covered in a June 2017 YourMoney.com article.

During peak season, many holiday lets are charging £1,200 a week, which is nearly six times higher than the average rent for residential property. According to Second Estates, there are 165,000 holiday lets in the UK and rents are up by an average of 6.4%.

Second Estates say that there has been an increase in overseas visitors coming to Britain because costs are cheaper following the fall in the value of the pound after Brexit. In 2016, there were 37.6 million overseas visitors – an increase of 7%.

The CEO of Second Estates, Alistair Malins, said:

“The weak pound is persuading millions of Britons to remain in the UK this summer and attracting more overseas visitors to the UK. The strength of the UK tourist industry is paying dividends for holiday property owners.”

For people considering investing in holiday lets, a broker will have access to a wide range of commercial mortgage lenders. A deposit of at least 30% will be required. Fixed-rate mortgages at reasonable interest rates are available for a short period, after which most commercial mortgages default to a variable rate.

If the owner does not wish to manage the property, there are many agencies that will handle the booking process, manage the holiday let and market the property.