Posts with tag: holiday lets

Number of active holiday lets increase by as much as 33%

Published On: August 12, 2022 at 8:54 am

New research from Octane Capital reveals that the number of active holiday lets has increased by as much as 33% in some of the UK’s most popular short break destinations.

The research shows that in Q1 2021, across ten of the UK’s most in-demand holiday let destinations, there were a total of 99,314 active rentals on the market. By Q1 2022, this had increased to 100,551, a rise of 1.25%.

The biggest increase has been reported in the Lake District, where the number of active rentals increased from 5,693 in 2021 to 7,591 in 2022, a rise of 33.3%.

Strong annual growth has also been reported in the Peak District (25.2%), the Cotswolds (25%), Cornwall (24.1%), Devon (21.1%), Brighton (13.1%), and Liverpool (10.8%).

However, three of the popular holiday let locations on Octane Capital’s list experienced an annual decline in the number of active rentals. These are all located within major cities – London (-17.1%), Newcastle (-11.6%), and Manchester (-1.7%).

Octane Capital believes that the growth can be attributed to high street mortgage providers now offering a specific holiday let mortgage.

The financial service provider describes them as specifically designed mortgages for people who are looking to borrow money to buy a property that they plan to let out on the holiday let market. It’s different to the familiar holiday home mortgage, which is essentially a second home mortgage because the buyer is the only one who will be using the second property. It’s also different from a buy-to-let mortgage because the buyer is not going to be letting out the property via long-term tenancy agreements.

Jonathan Samuels, CEO of Octane Capital, comments: “Holiday lets offer a much more private and self-sufficient holiday experience than hotels provide. They provide more space and more freedom. So, it’s little wonder that the market is booming so much in most parts of the country.

“Because holiday lets are now the first choice for a huge swathe of the population, more and more people are thinking about ways to make money off the sector. Some people are simply opening up a spare room in their home, but others are buying new properties with the sole purpose of putting them on the holiday let market.

“While it’s an attractive idea, it’s one that requires careful consideration. The old idiom of location, location, location has never been more appropriate. If you can’t buy a property in a high demand short-term rental location, you’re going to really struggle to make any sort of profitable income in this sector. It’s about finding locations that offer the perfect balance between affordable purchase price and strong, reliable rental income. This is often easier said than done.”

Landlords Can Now See How Much More Rent They Could Make Through Airbnb

Published On: February 10, 2020 at 10:05 am

Author: Em Morley

Categories: Landlord News

Tags: Airbnb,holiday lets

Landlords Can Now See How Much More Rent They Could Make Through Airbnb

A new rent calculator directly compares traditional rental yields to short-term holiday let yields in a range of UK cities, but many are concerned that this will negatively affect the PRS.

The calculator, launched by blinds specialist Thomas Sanderson, is based on landlords surveys, and will make it easier for landlords to make the comparison between letting their properties as normal, or switching to holiday lets.

ARLA Propertymark estimates that as many as half a million homes in the private rental sector (PRS) could soon be switched to holiday or short-term lets, and they say that it’s mainly due to tax and legislative changes in the industry.

The study, which looks at the scale of Great Britain’s short-term lets sector and the wider implications on the PRS, also shows that 16% of adults have let out all, or part, of their property at least once in the last two years – equating to 8.2 million people.

This suggests 4.5 million properties, the equivalent of 19% of the UK’s housing stock, have been used for short-term lets, which works out at 24.2 million properties.

One worry is that tenants will struggle to find property to rent if the choice and availability continues to shrink at such a rate.

Cllr Jacqueline O’Quinn of Brighton & Hove City Council, commented: “I find this type of online [Airbnb rental calculator] tool deeply disturbing as it means taking rentals out of the long-term rental market and making them short-term i.e. holiday lets.

“This means depriving families of rentals in the city and depriving those who work in the city of somewhere they can live.

“This has a negative impact on the city as we need to be able to offer long-term accommodation to those who live and work here.”

Landlords Switching to Holiday Lets Could Cause Rental Crisis

Published On: January 31, 2020 at 10:11 am

Author: Em Morley

Categories: Landlord News

Tags: holiday lets,landlord law

Landlords Switching to Holiday Lets Could Cause Rental Crisis

An uptick in the number of buy-to-let landlords considering switching to short-term holiday lets is sparking concern in an industry where supply is already struggling to meet demand.

New research from ARLA Propertymark estimates that as many as 470,000 privately rented homes could soon be converted to short-term and holiday rentals, in part due to legislative and tax changes in the private rental sector (PRS).

ARLA Propertymark’s research, in conjunction with Capital Economics revealed that the number of active listings on Airbnb rose by 33% in the UK from 168,000 in 2017 to 223,000 in 2018, with London being the area of highest growth (almost four-fold between 2015 and 2019).

As the number of short-term lets increases, the brunt of the change is felt by residential tenants who find that they have less choice of long-term rental properties.

In the research, the landlords of 230,000 properties said that they were ‘very likely’ to make the move to offer short-term lets. A further 240,000 said that they were ‘fairly likely’, bringing the total to 470,000.

David Cox, ARLA Propertymark chief executive, commented: “The growth in short-term lets is particularly concerning for the traditional private rented sector. As landlords are continuously faced with increased levels of legislation, it’s no surprise they are considering short-term lets as a chance to escape this.

“Unless the sector is made more attractive, landlords will continue to exit the market resulting in less available properties and increased rent costs.”

ARLA Propertymark has made the following recommendations to limit the impact of short-term lets on the private rental sector:

Carefully consider the impact of any future regulation that may incentivise landlords to start using their properties for short-term lets and thereby reduce housing supply for local people trying to find a home

Ensure a level regulatory playing field between short-term and long-term lets including protections for tenants and health and safety requirements

Ensure a level taxation playing field between short-term and long-term lets so there are no advantages for commercial landlords using their properties for short-term lets

Identify ways to improve enforcement of cases in which commercial landlords are not complying with local planning laws or the 90-day limit for short-term lets in London

Recognise that the impact of short-term lets on housing supply is not uniform across the country and ‘one size fits all’ regulations are unlikely to be optimal

Distinguish between using one’s primary residence for short term lets when the property is being under-utilised and commercial landlords renting out entire properties on a full-time basis

Monitor and track the number of entire properties on sharing platforms by hosts with multiple listings in different areas to inform future policy

Consider introducing limits on short term letting activities in areas in which there is a demonstrable impact on private rented housing supply.

8 reasons why 2020 is the year to buy a UK holiday let

Published On: January 28, 2020 at 9:27 am

Author: Em Morley

Categories: Landlord News

Tags: holiday lets,UK housing

There are many fabulous locations across the UK for holidays, meaning increasingly more Brits are happy to stay in the country for their vacation. Whether you want a break in the countryside or to sunbathe by the sea, there are plenty of options.

With this in mind, Spot Blue International Property has listed its top eight reasons why 2020 could be the ideal year to invest in a holiday let on home soil:

1. A growing staycation market

VisitBritain states that domestic tourism currently accounts for almost 80% of all tourism activity in the UK. About £72 billion is spent annually by domestic tourists, or ‘staycationers’, in England alone.

Short breaks are becoming particularly popular, with the national tourist agency recording 35 million overnight holidays being taken between July 2018 and July 2019. This is a 2% increase on the same period the previous year.

2. Rising inbound tourism

More overseas visitors are also coming to the UK. This is bringing in revenue and creating a larger market for tourist accommodation. VisitBritain predicts the number of overseas visits to the UK to rise to its highest level ever this year, reaching 39.7 million. This will be 2.9% higher than in 2019. August 2019, in particular, was the highest month on record for both inbound visits to the UK and overseas visitor spending.

3. It’s greener!

Everyone is thinking more about their impact on the environment now, even when it comes to holidays. Holiday homes in the UK are an eco-friendly option for domestic tourists, as they take away the need to fly. On top of this, the most modern holiday properties have very low carbon footprints, due to the construction process and energy-saving qualities once built.

4. No need for foreign currency

Since the EU Referendum in 2016, the exchange rate hasn’t been on the side of British holidaymakers abroad. This also goes for property investors, as this weaker pound means everything costs more. Investors and tourists can avoid this issue by staying in the UK. It’s also a less stressful process to buy a property in your home country than it is to purchase abroad, especially if you aren’t fluent in that country’s language.

5. Easier travel

Being able to travel by car rather than having to suffer the queues and delays at an airport is another reason to holiday in your home country. You can also be more flexible with when you go and leave, as well as what you take with you. An even greener option is to go by train or coach!

6. Investment potential

Spot Blue International Property also highlights that holiday home developers in the UK, such as themselves can offer attractive terms to investors, as well as lifestyle buyers. It’s worth doing some research into such options if this interests you!

7. Tax benefits

Another perk of property investment, according to SBIP, is that furnished holiday lets in the UK are treated as businesses and come with favourable tax breaks and allowances.

They say: “As a guide, they attract capital allowances, which can be applied to furnishing the property, most of their running costs are tax-deductible, any profit can be used for pension contributions, capital gains tax incurred from them is low, and most will qualify for relief on business rates while being exempt from council tax.”

8. No language barrier

If you are not multilinguistic, then staying in the UK might be your preferred choice. It certainly is less stressful if you don’t want to make the commitment to learning another language or pay for professional help when it comes to the legalities of buying and letting abroad.

Hostmaker Apologises for Holiday Let Ad seen as “an Attack on the City”

Published On: June 4, 2019 at 8:03 am

Author: Em Morley

Categories: Lettings News

Tags: holiday lets,London,short-term lets

Hostmaker, the holiday lets platform, has agreed to remove its ‘anti-tenant’ adverts from the London transport network.

Generation Rent, the national campaign for private renters, began a petition, after a holiday let ad appeared, encouraging landlords to change their investments from long-term tenant lets to short-term holiday lets, claiming the latter would earn them 30% more.

Londoners made this appeal to Mayor Sadiq Khan, asking him to ban such adverts, as they were at odds with his goal of making renting more affordable in the city. Over 8,000 people signed a petition on the 38 Degrees website within the space of 12 days.

The decision was also made for protesters to gather at Bond Street Station to campaign against the advert, which suggests that landlords should turn to holiday lets for higher profits.

Hostmaker then released a statement on Friday, apologising for the adverts. The company has now acknowledged that “the tone was misguided”.

In the statement, Nakul Sharma, CEO of Hostmaker, said: “the adverts will be coming down this weekend and we will be reviewing all future creatives with our partners.”

This statement also said that Hostmaker’s “portfolio is made up of premium homes in zone 1&2 postcodes and does not take affordable housing stock away from the market.”

Dan Wilson Craw, Director of Generation Rent, has commented: “The growing short term lets market is taking homes away from ordinary Londoners, pushing up rents and eroding the capital’s local communities. These adverts were an attack on the city and we are glad that Hostmaker is now doing the right thing and taking them down.

“But it is still far too easy for landlords to take homes out of the long term rental market in pursuit of higher profits. We need much stronger regulation of the holiday lets market so that we can give all Londoners an affordable home.”

Holiday Let Websites Adding to London’s Housing Crisis, Warns RLA

Published On: August 31, 2016 at 9:28 am

Author: Em Morley

Categories: Property News

Tags: holiday lets,housing crisis,London,rental property

New research from the Residential Landlords Association (RLA) raises serious concerns that the growth of holiday let websites is aggravating London’s housing crisis, with the majority of property listings available for more than three months a year.

Holiday Let Websites Adding to London’s Housing Crisis, Warns RLA

Recent analysis by the landlord body found that 61% of all the houses and flats listed on Airbnb in London were advertised as being available for more than 90 days per year in June.

The RLA is concerned that some property owners are using holiday let websites to provide long-term accommodation, without having to comply with all the regulations, safety and insurance rules governing the private rental sector.

Planning permission is required for short-term holiday lets in London that are available for over 90 days in any given year, to prevent property owners from avoiding the regulations covering the long-term renting of property to private tenants.

The RLA is now calling on the Mayor of London, Sadiq Khan, and the Government to conduct a review of the policing of Airbnb-style models, to ensure that those advertising lets of more than 90 days have permission and are not trying to get around the law.

Concern has also been raised as to how many social and private tenants are subletting in violation of their tenancy agreements.

The research from the RLA also shows that 41% of all Airbnb listings in London in June were multi-listings, meaning that property owners had more than one property listed, up from 38% in February. The number of multi-listings on Airbnb rose from 12,744 in February to 17,593 in June, signalling how commercialised the website is becoming.

The Policy Director at the RLA, David Smith, says: “London more than anywhere else in the country is in desperate need of more homes to rent and to buy.

“Given the pressures faced in the capital, it is important that properties advertised as being available for more than 90 days a year are genuine holiday lets with appropriate planning permission. Otherwise, as well as taking rental stock off the market for those looking for somewhere to live, they are also putting tenants in a vulnerable position without all the protections offered by a tenancy agreement.”

He adds: “We are calling on the Mayor of London and the Government to work together to improve the policing of such sites to ensure they are not being abused.”