Holiday let opportunities for buy-to-let investors

Holiday let opportunities for buy-to-let investors

Thanks to the relatively low value of the pound, Britain is attracting record numbers of foreign travellers, with tourism experts predicting that by the end of this year we will have welcomed nearly 40 million overseas visitors to our shores.

The national tourism agency, Visit Britain, has confirmed that between January and July, there were 23.1 million inbound visits, an increase of eight per cent on the same period last year, and estimates the total for the year will reach 39.7 million.

At the same time, ‘staycations’ are on the rise, with Britons staying home for their holidays and enjoying the UK’s many attractions; from the Cornish coast to the Scottish highlands.

As a result, investors and professional landlords are increasingly looking at holiday lets as an alternative to the traditional buy-to-let model, with websites like Airbnb offering an easy marketing solution for short-term rentals.

In certain cases, there may be higher costs associated with holiday lets, such as a weekly cleaner, or management agents’ fees, and income can be seasonal in some locations, but even after these factors are taken into account, savvy investors may still be able to achieve yields of about six per cent a year, according to one agent specialising in the holiday let market.

With these kinds of landlords in mind, we’ve launched a new product to support investors looking to buy or remortgage a holiday let property, with loans of up to £2 million and loan-to-values of up to 65 per cent.

We’ll also look at lending to a wide range of customers, including expats, limited companies, sole traders and the self-employed, as well as those with a less-than-perfect credit history, adapting our usual philosophy of common sense lending.

Tax and regulatory changes in recent years have dramatically altered the state of play for buy-to-let investors, who are thinking of innovative ways to maximise their investments in the market and, for some, holiday lets could offer a viable option, allowing them to capitalise on Britain’s popularity as a leading tourist destination.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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