17% of British holidaymakers are planning a staycation in the UK this year, according to the findings of a new national survey by the Leeds Building Society.
The research found 10% of people have changed their holiday plans as a result of ongoing uncertainty around the UK’s exit from the EU, with many choosing to stay in the UK for their summer holiday.
The Leeds said the growth of staycations provides an opportunity for landlords to diversify their portfolios and include holiday let properties.
Matt Bartle, director of products at the Leeds Building Society, said: “We were the first lender to launch a dedicated holiday let mortgage range in 2013 and continually review our products to meet the needs of borrowers.
“Demand has been growing for our products since then and we saw an almost 10% increase in holiday let mortgage applications in 2018 when compared with 2017, as landlords look to diversify their portfolios.”
Highlights from the current range of Leeds Building Society holiday let products include:
- 3.14% five year fixed rate holiday let mortgage up to 70% LTV with a £999 product fee
- 2.69% two year fixed rate holiday let mortgage up to 70% LTV with a £999 product fee
When it comes to the kind of UK holiday people are looking for, a second Leeds Building Society survey revealed the most desirable holiday let property for staycationers is a cottage near the coast in South West England.
The national survey found England to be the most desirable location in the UK, with 62% selecting it as their preferred destination, followed by Wales (36%), Scotland (21%) and Northern Ireland (2%).
Of those staycationing in England, the South West topped the polls (25%), with Yorkshire and the Humber (16%), the North West (10%), North East (9%) and South East (6%) rounding out the top five.
49% of respondents favoured the coast for a UK getaway, followed by a country retreat (34%) and a city break (17%).
Bartle added: “Our research indicated that traditional holiday locations, such as the South West, Yorkshire and the Lake District, remain as popular as ever.
“While coastal properties were preferred by the majority of respondents and high demand means high returns, it is important for landlords to remember performance can be seasonal and affected by the weather.
“Holiday properties in some locations may be let for as little as 20 weeks per year, so the owner has to consider how he or she will maintain mortgage repayments during void periods. Putting money aside during peak months could help with expenses out of season. Owners of holiday lets can also benefit from using the property themselves for their own holiday purposes.
“Buying a property as a holiday let, like any other property investment, does carry risk but it enables an investor to diversify their portfolio risk by letting weekly to a range of occupiers, rather than relying on one individual to pay their rent each month.
“Purchasing an existing holiday let in a sought-after location can provide buyers with further information on long-term performance and reassurance over the future ability to rent.”