17% of adults in the UK have contemplated buying a holiday let property during the pandemic, according to new research from Suffolk Building Society.
Younger people led the trend, with those aged 18-34 most likely to have thought about buying a holiday let property within the past 24 months.
Two urban areas had the highest number of prospective landlords, with those living closest to London at 32%, followed by people in the West Midlands (19%).
This increased interest in holiday let properties is mirrored at Suffolk Building Society, with both the volume of, and total value of, completions for new holiday let purchases doubling between 2020 and 2021.
The setting of the property was more important than other factors such as renovation potential, or proximity to amenities, for potential landlords. The key aspects for wannabee landlords when considering buying a holiday let were:
- A property that is in or near beautiful scenery (31%)
- A property that is near the beach or coast (30%)
- A property that is easy to manage and doesn’t require much upkeep (28%)
- A property that is in an area that the landlord already personally knows or loves (27%)
- A property that is in a popular tourist or holiday destination (23%)
Suffolk Building Society’s Head of Mortgages, Charlotte Grimshaw, said: “It’s easy to understand why the idea of owning a holiday let home is so attractive. As people were limited to holidaying in the UK, often within an area they know and love, their eyes were opened to the opportunity of increasing their income, as well as enjoying a property for personal use too.
“However, prospective landlords would be wise not to get carried away in the holiday spirit as the purchase needs to stack up financially too – especially for those who require a mortgage on their holiday let property. Our advice to anyone considering this route, would be to ensure you understand the criteria that mortgage lenders will be looking for as it can be quite different to a standard residential mortgage application, or even a standard buy to let mortgage too.”
Of those who expressed their interest in becoming a holiday let landlord, almost a third, (32%) said Covid-related restrictions inspired them to look into holiday lets, however, half (50%) claimed it was always part of their plan.
Devon and Cornwall were the locations that most wannabee holiday let landlords were considering, followed by the Lake District, Peak District and Yorkshire Dales.
Grimshaw added: “The pandemic helped many of us rediscover what the UK has to offer, and this of course also has a positive impact on the environment too. Instead of automatically jetting off to warmer climates, eco-conscious holidaymakers are realising they can enjoy numerous destinations around the UK whilst minimising their carbon footprint and supporting domestic tourism at the same time.
“Before jumping on the bandwagon, potential owners should do their due diligence; consider the financial commitments of not just the purchase but the maintenance, taxes, and other expenses such as cleaners and gardeners. It’s also worth taking the time to understand the market, and check out the competition before falling in love with a property that isn’t viable in terms of lettings.”