Sharp rise in buy-to-let investment in UK hotels
By |Published On: 28th July 2017|

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Sharp rise in buy-to-let investment in UK hotels

By |Published On: 28th July 2017|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

Buy-to-let investors are being driven to invest in UK seaside hotels, according to an interesting new report from Property Frontiers.

Returns of around 10% are proving a draw to many investors, moving away from more traditional buy-to-let.

Seaside Visitors

Britain enjoyed record visitor numbers during 2016, with Visit Britain reporting 37.6 million visitors during the course of the year. This represented a rise of 4.14% on 2015.

Figures from travel marketing company Sojern suggests that there has been a 23.8% rise in the number of Brits planning a UK break for 2017. Brexit is thought to be a key influencing factor on many families’ decisions to stay in Britain.

As a result of this, hotel investment in the UK is forecasted to grow by 28% in 2017.

Sharp rise in buy-to-let investment in UK hotels

Sharp rise in buy-to-let investment in UK hotels

Brexit

The pound has recovered somewhat since the result of the EU referendum, but it is still struggling, remaining 16% lower against the dollar and 14% lower against the Euro than before the vote.

Savvy investors are taking advantage of this to increase their stock of UK hotel rooms, with sizeable returns tempting many.

Savills reports that investment in UK hotels has already hit £2bn during the opening half of 2017. Should projections from the firm prove correct, investment for the whole year will reach £5.1bn – a rise of 28% from 2016.

Ray Withers, CEO of Property Frontiers, observed: ‘UK hotel rooms are hot property right now when it comes to investments that offer impressive returns. They outshine buy-to-let in several ways – there’s no stamp duty, no buy-to-let tax issues and a comparatively low entry point. For investors from overseas, there’s also the ongoing favourable exchange rate, with the pound not yet fully recovering from the UK’s decision to leave the EU.’[1]

[1] http://www.propertyreporter.co.uk/property/oh-we-do-like-to-invest-beside-the-seaside.html

 

 

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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