Now a new report has revealed that average incomes for UK holiday lets per booking are up 6.4 per cent for the first four months of this year, compared to the same period in 2016, showing that this trend is paying dividends for investors.
There were 165,000 holiday lets in the UK last year, with the average house generating £22,281 in income over the year, according to the industry research.
Hotspots where holiday rental growth was fastest include the south of England, where the increase was 17.3 per cent, according to the research. This was followed by areas of the South West, including Cornwall, with 14.5 per cent growth and Devon, which saw an increase of 8.9 per cent. Popular tourist destinations in northern areas like Northumbria, the Yorkshire Dales and the Lake District also saw decent rises in the first four months of this year.
Experts say the demand is being driven by millions of British holidaymakers keen to stay in the country and the ease of using apps such as Airbnb for them to book their accommodation. Their numbers were boosted by record numbers of overseas visitors, who made a record 37.6 million trips to the UK last year, generating £22.5 billion to the economy, according to the report.
In the first four months of this year, there was a seven per cent increase in foreign visitors, compared to the same period in 2016, with the amount they spent increasing by 11 per cent, according to the latest data.
These figures underline how the continued strength of the UK tourist industry could offer attractive opportunities for savvy investors looking to purchase property across many areas of the country. The rising demand means that, in many regions, property owners can be confident of good returns on investments such as rental holiday cottages or commercial property such as hotels, for example.
We provide finance on various property types and have the knowledge and experience to be able to deal with the more complex cases where mainstream lenders may not be able to assist, such as a commercial investor who may be looking to purchase guest accommodation. So, as we look forward to a prolonged period of hot summer weather, it’s worth considering whether specialist funding could provide a warm outlook for British holiday property investment.
