Staycations set to stay
- Published: Tuesday 09 February, 2021
- By: Commercial Trust
With the UK tightening border controls, and optimism surrounding an end in sight for the national lockdown, industry experts are certain 2021 will be the year of the ‘staycation’.
Growing in popularity over recent years, 2020 saw a massive boom in Brits holidaying closer to home due to Covid uncertainty and last-minute getaways.
Industry experts are confident that 2021 will see a continuation of this upward trend.
Holiday lets hopeful
Andrew Easton, Managing Director of Beach Retreats, a self-catered holiday letting agency commented:
“2020 was a year of stark contrast; in July we went from zero bookings to being completely full overnight and thankfully the interest hasn’t waned since.
“In the past 15 years, I haven’t seen the holiday market perform so strongly in the South West, especially for long lead time reservations. We will soon be opening 2022 for reservations to reflect demand.”
This positive sentiment is echoed in the consumer side of the industry, with summer bookings already filling up.
Holiday home searches soar
Sykes Holiday Cottages, one of the biggest holiday home rental agencies in the UK, revealed that the number of people searching for a self-catered UK summer holiday has increased 129% compared to this time last year.
Graham Donoghue, chief executive at Sykes Holiday Cottages said:
“We’ve seen a significant increase in bookings for later this year, showing that confidence is returning and just how eager we all are to take a much-needed break away this year.”
“With millions more Brits now choosing to forgo foreign holidays in favour of UK breaks, not only is it a huge boost for the UK economy, but it is also adding to the attractiveness of holiday letting as an investment opportunity.”
Holiday let investments
This boom in the ‘staycation’ and holiday let industry could prove to be a chance for investment for some landlords.
Compared to the traditional buy to let properties, holiday lets are open to allowances and council tax reliefs for “furnished holiday let” properties that are rented out for 105 days more a year.
This could mean lower costs and better ROI in some cases.
With constant checks and cleaning between visits and payments being taken upfront, there is arguably a smaller risk of non-payment for holiday lets, compared to longer let properties.
However, with heavier footfall, holiday lets can occasionally incur more in upkeep and maintenance than their buy to let counterparts.
There is also the current consideration of cleans between guests and the risk of further lockdowns to bear in mind.
Nonetheless, with Covid cabin-fever rising by the day, many self-catering properties are already getting heavily booked up.
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.