5 Top Tips for UK Holiday Let Investors
Holiday let investment saw a spike in popularity following the return of international travel in the aftermath of the coronavirus pandemic. Despite the current market conditions posing challenges for buy-to-let landlords, this corner of the UK market remains resilient.
Mortgage brokers are reporting that demand is still high in the holiday let sector, and if you’re thinking of investing in it, here are some top tips to help you get started.
1. Identify the rental hotspots
First and foremost, you will need to identify the most viable location for your holiday let property to stand the best chance of generating the maximum rental income. Countless reports are produced about UK holiday let hotspots each year, so be sure to access as many as possible to cross-check the information they contain in search of a consensus.
Locations that are frequently cited as the best in Britain for holiday lets include the Lake District, the Cotswolds, the Peak District, and Devon and Cornwall.
2. Consider working with a holiday agency
This isn’t the right option for everyone in the holiday let space. No doubt some people are in a position to be hands-on with the management of their property or can’t afford the additional cost an agency involves, but there can be significant advantages to using one.
Among the benefits of using a holiday agency is the fact they can promote your property for you and help with bookings, as well as take care of the general management of it. Their services obviously incur fees, so remember to factor this into your business plan.
3. Think about features
It’s worth considering what features your target market will be expecting. If you’re catering for high end customers, they will be anticipating high spec furnishings and decor, while those on a tighter budget might consider these things a non-essential bonus.
Generally speaking, features including hot tubs, super-fast broadband and pet-friendliness are known to boost the rental potential of holiday lets, so consider them as a starting point.
4. Consider the property’s resale value
When buying any investment property, it’s important to think about how much you could recoup if you ever had to sell it – maybe that’s even your plan in the long run.
House price data for the local area is available through services such as RightMove and Zoopla so you can see how they have changed over time. Factors such as what local amenities are nearby and upcoming improvements to the area are also good indicators of whether the value of your holiday let property is likely to rise in the future.
5. Use a mortgage broker to secure your finance
Unless you’re a cash buyer, you’re likely to need a mortgage to purchase your holiday let property, but getting the lowest rates and the most favourable deal can be tricky if you go it alone.
The good news is that there are buy-to-let mortgage brokers who specialise in holiday let mortgages. They arrange them every day and have the knowledge, expertise and lender contacts to ensure that you get the best possible rate and deal for your finance.
Make an enquiry with us and we’ll use our free mortgage-broker matching service to pair you with the right holiday let mortgage specialist today.