Foreign travel chaos, the weak pound and the cost-of-living crisis will make the idea of holidaying in Britain more attractive to many tourists looking to get away this summer.
The appeal of British-based holidays – which soared in popularity during Covid as restrictions curbed overseas travel for many – is set to continue through the rest of the year, because of current economic instability and the pressure on household finances, hospitality experts have claimed.
And the survey of 2,000 UK adults by specialist holiday let mortgage lender Together, suggests people are looking to take advantage of this continuing trend with 24% considering becoming a holiday let owner, a figure which rises to 51% of 18 to 34-year-olds.
The biggest motivator is potential profits, with 48% saying they would consider short-term holiday letting as a way of earning extra money. This is even more important to those aged 55 and over, with 65% driven by an additional source of income.
The next most important driver was for owners to maximise the use of the property they already own (28%) and as a way of funding their retirement (29%), which is also important for older Brits, with 37% saying this would be their top reason for being a host.
However, 22% would be put off because they think they wouldn’t be able to get a holiday let mortgage, while other barriers included the time investment to get it set up and running (28%) and renovating the property to a high enough spec to make their listing successful (21%).
Meanwhile, Together commissioned a separate survey of 100-holiday let owners who rent out their properties through platforms such as Air BnB.
The poll found that extra income and convenience were the biggest positives of being a host. 63% cite the additional income, while 35% said it allows them to maximise the use of their property assets, and 30% that it makes them feel like an entrepreneur.
Among the 88% who would recommend becoming an Air BnB host to others, 64% said this would be because of the additional income, while 45% said they’d be able to pass on the holiday property in their will.
The survey results have been published ahead of the half-term holidays later this month, when UK families struggling with price inflation, will be considering staying in the UK rather than jetting off abroad.
Marc Goldberg, Commercial CEO at Together, said many investors may see an opportunity in short-term holiday lets, which can provide greater yields than traditional longer-term Buy-to-Let, which typically sees tenants signing up to six or 12-month contracts.
Although this may give investors more security, short-term holiday lets allow landlords to increase the rental they can charge in peak seasons such as half-term, Christmas and summer holidays.
He adds: “Staycations have been in extreme demand – with bookings reaching all-time highs this past summer – and their popularity looks like it’s here for the foreseeable future. As our research shows, many potential investors are looking to short-term lettings as a way of generating more profit, and this comes at a time when rising mortgage costs are making the traditional buy-to-let market less attractive.
“We are also seeing UK families wishing to stay in the UK to control costs, avoid getting caught up in potential airport travel issues, or just want to experience the UK’s beautiful countryside, so there are lots of new holiday letting opportunities cropping up as more people recognise the income benefits of becoming a full or part-time host.
“While the rewards are plenty, there are some considerations for anyone weighing this up. Mortgage applications for holiday let properties are not always available from mainstream lenders, so it’s worth potential holiday let owners talking to specialist lenders, who could help to turn their ambitions to becoming a host into a reality.”
