Staycations look set to stay
With uncertainty around air bridges, international travel and quarantine rules, could a holiday let in the UK be your next investment?
We had become very blasé about air travel until March 2020. Now, 101 years after the UK’s first daily passenger air service launched (London to Paris in 1919, taking off from a patch of land approximately one mile from Heathrow Airport, in case you were wondering), jet setting to international locations has become a fragile privilege.
As a result of ever-changing travel restrictions, holidaying in your home country has never been more popular. We’ve come off the back of an exceptional summer for destinations including Cornwall, the New Forest and the Cotswolds – all locations flagged up by The Evening Standard as holiday home hotspots.
Looking to the future, the degree of uncertainty is encouraging more people to book ahead but, crucially, to book at home. In fact, research by The Cumberland building society, released in August 2020, found 71% of holidaymakers intending to plan a UK holiday in 2021, with 68% listing fears of being stranded abroad and uncertainty around Covid-19 (62%) as their main motivation. Quarantine measures and concerns over self-isolation were also cited.
With sustained staycation demand and Brexit waiting in the wings, investing in a UK holiday let sounds like a plausible idea. So is now the right time to purchase a bucket-and-spade buy-to-let?
In the past, holiday lets have been deemed slightly risky due to their seasonal nature and high turnover of transient tenants but with Covid comes a greater desire to escape city centres and urban conurbations. At best, investors will be fully booked on a year-round basis, with holidaymakers paying increased room or property rates and a diary full of staycationers forgoing their annual overseas trip.
Middle ground would be brisk bookings with a few empty weeks, which could easily be filled by the investor, staying themselves on their own staycation, or offering the property to family and friends. The worst case scenario? A failed holiday let venture, leaving the investor one of two options: move in themselves as part of a post-Covid relocation or sell up and attract someone else who harbours the same dream.
Additionally, the temporary stamp duty holiday is on holiday let investors’ side. Although there is still a 3% stamp duty fee levied on those buying an additional property, holiday let purchasers can still benefit from the Chancellor’s initiative and save up £15,000. Investors should be mindful, however, that they must complete on any holiday let before 31st March 2021 to qualify.
Viewber can play an essential role in a holiday let investment.
From on-location visits to scoping out a property and its position, to check in, check out and condition inspections, we can help holiday let investors successfully manage their property from afar. Get in touch to discover more.