Millions eye holiday-let investment

Almost one in 10 Brits, some 4.7m adults, now say they are seriously considering buying a holiday-let over the next five years. Of the rest, one in five say they are open to the possibility.

The finding comes from Nottingham Building Society which has concluded that the post Coronavirus staycation boom has seen investment in holiday-let accommodation take off.

A study by the mortgage lender found that just over half of holiday-let owners surveyed had bought their properties in the past two years.

And would-be UK holiday-let owners said they expected to benefit both from the money and from private holiday use of their property.

One in ten said that buying a holiday-let would also give them somewhere to retire to one day.

The vast majority (84 per cent) of those existing holiday-let owners surveyed said they made more income from them in 2021 than 2020. 2022 was more uncertain with just over half of owners having cut rents for this season.

Of the English regions, the south-west was the most sought-after by potential holiday-let buyers.

‘Buying holiday-lets is an aspiration for many – with some planning to go on holiday there, a significant number planning to live there permanently in the future and others seeing them purely as an investment’, said head of mortgage product at The Nottingham, Christie Cook.

‘The recent staycation boom has driven interest in UK holiday-lets, particularly as the pandemic reintroduced people to the beauty of holidays in the UK. 

‘We were delighted to announce recently that we are now lending on holiday-lets in England and Wales. Our advice to anyone planning to buy a holiday-let would be for them to get in touch with an expert broker to assist in looking at their mortgage options’.