Holiday lets – are they the new investment for landlords?
Since the pandemic holiday lets have been a new source of investments for landlords according to the Suffolk building society. Although it seems that it’s the younger generation bucking the trend, with 18- to 34-year-olds most likely to have considered it. The building society itself says completions for new holiday let purchases doubled between 2020 and 2021.
Are holiday lets a good investment in the UK?
Yes, they are, and choosing somewhere that is busy all year round will yield the best investment. Generally, short-term lets tend to be more lucrative compared to long-term rentals. The weekly rate charged is significantly higher, increasing the income potential. According to Sykes the average holiday let owner earning is approximately £21,000 per year.
Where is the best ROI location?
The most lucrative location for holiday lets in the UK is Gwynedd, northwest Wales, where revenue is around £47,000 per year. But it’s not just about the revenue (although mostly) it’s also about occupancy rates. It is the occupancy rate that gives a good glimpse into rental activity in the market, and again, Northwest Wales scored highest in this area too.
Here are the top locations in order of revenue for 2021.
- Mid-Wales, UK
- Isle of Anglesey, UK
- Devon, UK
- Suffolk, UK
- Lake District, UK
- Conwy, UK
- Dorset, UK
- Gloucester/Cheltenham, UK
- West Wales, UK
- Cornwall, UK
- Scarborough, UK
- Isle of Wight, UK
- Peak District, UK
- Norfolk, UK
Is buying a holiday rental a good idea?
Buying a holiday home isn’t just about rental income, it also doubles up as a retreat for you too. Most investors only look at the figures but buying in a beautiful location can have staycation benefits alongside monetary ones.
If you’re looking for a property in Norfolk, then take a look at our current property list. We have properties of all sizes available today.