The fall in the sterling has meant that overseas holidays are more expensive. This, coupled with the effect of good weather in May and June 2018 has made it more attractive to take holidays in Britain. These holidays are often referred to as “staycations.”
There has been stagnant wage growth, and this has caused many households to look at ways to reduce their expenditure. Going on a cheaper British holiday is one way of saving money.
It is forecast that the annual expenditure on holidays in Britain will rise by 6.2% to £14.1 billion. This is good news for hotels, and for buy to let property owners as many families and couples are looking for rented accommodation. Online booking with Airbnb and similar agencies has made it easy to find and book accommodation for a holiday.
Investors are attracted to the holiday let market because per-night rents are higher. These can more than offset the higher costs of cleaning and regular agency fees. Brokers can find commercial mortgages to purchase properties or can arrange remortgages on existing property. Loans are available for all types of borrowers, employed, self-employed and limited companies. Up to 65% loan to value loans are available.
Some standard buy to let mortgages will not allow short-term lets, but a broker will be able to find a commercial mortgage deal that is suitable for short-term leases.
Many landlords, faced with rising costs, are looking for better rental yields, and these may be achieved through higher rents for holiday lets.