All around the UK, landlords are looking at buy to let alternatives. The time-honoured favoured investment that has enjoyed decades of popularity has lost its golden boy status, as landlords ditch properties in search of other money-making avenues. The downtrend is making headlines news.
An example in a recent report by the Telegraph newspaper cited hard-hitting measures by the government including a reduction of tax reliefs on mortgages. The tenant fee ban and an inability to charge for reference checks are other new legislation making it harder for landlords.
The government aim is to reduce interest in the buy-to-let sector, and their campaign is working. The Royal Institution of Chartered Surveyors has confirmed the number of investors entering the buy-to-let market is dwindling. But what alternatives are they choosing?
Buy to Let Alternatives: Staycation Holiday Home
Enter the UK Staycation Holiday home sector that is enjoying much popularity as traditional buy-to-let landlords turn their attention to the holiday let market. Since 2017, when the new legislation for buy-to-let came into effect, sales of UK holiday homes have increased. Such is the popularity; leading banks have introduced holiday let financing options and Microsoft even published its report into the sector.
Landlords who favour marketing and promotion are going it alone through sites like Airbnb, while others are opting for rental guarantees averaging out at around 7%. Although the favourable tax laws on holiday lets garner much attention, there are more reasons why landlords prefer it as a viable investment.
1: A Growing UK Tourism Market
Reports after reports show that the UK tourism market is making a rebound and the growth will continue for quite a few years yet. For decades, the market has shunned UK holidays in favour of overseas destinations like Spain and Turkey.
Yet, the cost of holidaying abroad is no longer as cheap as it used to be, and a family of four can quickly work their way through a hefty bank balance. Taxes on flight tickets as well as lengthy travel times, the unfamiliarity of food, language and culture, and a growing awareness of our carbon footprints are leading Brits to stay at home.
2: Staycation Trends
Modern life can be hectic. Taking up most of our week, Brits find themselves with little opportunity to relax, rejuvenate and recharge our batteries. That is why the staycation trend has also taken off. The aim is to holiday close to home, and with it, comes many benefits, including low travel times, and the ability to holiday on a whim, whether this is a weekend getaway or an overnight trip with friends.
For landlords and families, holiday parks also include a variety of activities like swimming pools, paddle boarding, hiking, walking, canoeing and more. To have all this on your doorstep encourages us to grab as much downtime as possible. Alongside the growth in UK tourism, experts say staycations are here to stay.
3: Brexit Effect
After leaving the EU, a growing sense of all things British has arisen. Combine this with the increasing campaign for supporting local businesses like cafes, tea shops, pubs and restaurants, and holidaymakers need little tempting to book a domestic holiday. The staycation trend brings another benefit in we don’t have to leave our four-legged friends in kennels. Many holiday parks are also pet-friendly hence attract pet owners.
Best Places for Investment
Any buy-to-let landlord looking at the market should also consider where is the best place to buy. Our portfolio of holiday homes includes three areas leading the way in the UK tourism market. Yorkshire, Cornwall and the Isle of Wight are all enjoying the rebound of domestic tourism. Much of the lure is all things British but also the great outdoors. All destinations provide a variety of walking trails, scenic landscapes, and coastlines with stunning beaches to boot.
Cornwall: The local airport leads the way in attracting holidaymakers from all over the UK. With new vital routes launched for 2020, and popular towns like Newquay attracting attention, the tourism growth looks good. There is the time-honoured regional cuisine and cultural identity, but overall Cornwall is an all-rounder, satisfying all niches of the domestic tourism market. See holiday homes for sale in Cornwall.
The Isle of Wight: This small island has embarked on a tourism campaign to promote its stunning scenery, local cuisine, and tourist attractions to a domestic audience. Its slow travel guide outlines eight routes to explore via bike, on foot or by car and having won an award for the best beach in 2019; it attracts holidaymakers who enjoy the great outdoors. Homes in the Isle of Wight.
Yorkshire: Ah, the good old Yorkshire pudding. Yet, this booming tourism industry is going far out to accommodate all niches of holidaymakers. Using the tourism tagline “have a brilliant Yorkshire” it is most known for the Yorkshire dales, yet there is much more to see and do in the area including a city break, quaint villages, and sampling tasty, local grub. See Yorkshire Staycation homes.
To find out more about holiday homes as buy to let alternatives, call us today and speak with an agent about the market, potential areas and how to arrange a date and time for viewing. Otherwise, you might also be interested in the following articles.
Where to Buy a UK Holiday Home: We inspect the above three destinations, why they stand out and what they offer anyone thinking of investing in the holiday let real estate market.
Guide to Staycation Homes: A look at figures, trends, and reasons the staycation market is booming and what to look for, if you want to invest in it.