All across England, Scotland and Wales, the UK holiday letting market is thriving. We speak Joby Mussell at Travel Chapter, home to holidaycottages.co.uk, about why now is a such a great time to rent out your holiday home!

---

A great financial prospect

There are so many beneficial reasons to start your letting journey. The first and most obvious is that it’s a fantastic income opportunity. Obviously, the yield will vary by the size and location of your property, but the weekly returns of a holiday let are strong, and even more so with the growing demand for UK-based holidays.

Adding in features such as wood burners will also make your property stand out, attract more bookings in the off-peak season and ultimately deliver more income.  Hot tubs have a positive impact too and can help to achieve up to a 15% increase in weekly rental and attract an extra 5 bookings per year. (It’s why we contribute £500 towards the cost of a hot tub for our existing owners!)

A resilient tourism sector

Staycations have boomed in the last couple of years and the UK tourism economy remains strong, with bookings per property at holidaycottages.co.uk up 14% in 2022 compared to 2019.

This trend shows no signs of slowing going into next year, with bookings per property for 2023 up 36% vs bookings per property made at the same point in 2019.

This reflects the domestic market in recent years with holidaymakers discovering all that the UK has to offer – and wanting to see more of it, more often. Combine this with the increasing popularity of short breaks and last-minute getaways, and holiday let owners can now look forward to securing bookings all year round, rather than just in the traditional peak spring and summer seasons.

Tax benefits

Another potential advantage to owning a holiday let is the favourable tax benefits you could receive. As with anything, there are a few stipulations but if you meet the criteria to be a Furnished Holiday Let (FHL), the tax office could allow additional tax benefits, some of which are over and above those afforded to long-term residential landlords. But everyone’s circumstances are unique, so we would always advise prospective owners to consult a financial adviser.

Cost-effective finance

Whilst interest rates have climbed recently from historic lows, they remain relatively modest.  Furthermore, as the holiday letting sector becomes more attractive to investors, the number of holiday let mortgage lenders in the market is growing and the choice of products is becoming more competitive.

What’s more, whilst most costs associated with raising finance are ‘allowable’, if the purchase is structured correctly, there may be ways to obtain tax relief on interest payments that were previously treated as ‘non-allowable’ domestic mortgages on your private house.

Interested in letting your property?

At holidaycottages.co.uk, we offer over 30 years’ experience, a unique network of brands that deliver bookings, and dedicated local support from property account managers. Therefore, it’s no surprise that we are the go-to brand for more and more owners of holiday homes looking to maximise the return on their property investment.

---

If you would like more information or have any questions about investing in a holiday let, please get in touch on 01237 459990 or email joinus@holidaycottages.co.uk. Alternatively, visit holidaycottages.co.uk/let-your-cottage to download a free letting guide!