Property investors encouraged to consider investing in a holiday home
With house prices in the UK generally still on the rise despite talk of interest rate rises and new mortgage rules, a the leading holiday homes market place is encouraging property investors to consider the holiday rentals market to maximise their returns.
The firm, HomeAway, reports that it has experienced at 32% rise in demand for staycation holidays in the UK in 2014 and says that the revenues from short term rentals outstrip long term tenancies.
‘Holiday rentals also mean owners can still enjoy their second home without committing to the obligations of being a landlord. If owners are considering selling their properties, we suggest holiday rentals are the perfect solution in an uncertain market, and may be a long term strategy for investors,’ said Karen Mullins, marketing director of HomeAway which has more than a million holiday home listings.
Research by the firm shows that London is the top destination for enquiries from customers around the world, accounting for 43% of enquiries for UK based holiday homes. The West Country came second with 17%, South East England next with 9% and then the Cotswolds with 5%.
The firm added that the Cotswolds is a becoming a hot destination for both staycationers and overseas visitors alike with enquiries for the area up by 89% year on year. While this is good news for people who already own property in the area, prices in the Cotswolds are higher than London with the average home costing 19 times an average annual salary, according to the National Housing Federation.
‘We would suggest owners and investors in Yorkshire, the Midlands, the North East and Conwy in particular, look at holiday rentals, as these areas have seen enquiries more than double on HomeAway in the last 12 months and property there is far more affordable,’ explained Mullins.
HomeAway claims that there are other benefits to letting second homes rather than leaving them empty for 48 weeks a year that go beyond the rental revenue. Not only will the property be more secure when hosting guests, but these high spending visitors also provide a welcome boost to local attractions and restaurants, ensuring the long term prosperity of the destination and therefore value of the property.
‘People who book with HomeAway get to stay in fantastic properties across the globe that invariably provide better quality accommodation and value than hotels. These savvy staycationers also provide a welcome boost to rural economies and offer owners a healthy revenue stream of up to £54,000,’ said Mullins.
‘With the housing market showing signs of cooling, now is the perfect time to consider renting your second home to holiday makers, rather than selling up,’ she added.