We had the pleasure of meeting Tim Patient from Mulberry Cottages recently, who gave us an insight into the UK holiday lettings industry – which is booming at the moment – and the investment potential that this market brings.
It was interesting to learn that a city like Winchester, could be a more lucrative investment than an established holiday destination, such as Dorset, which tends to attract the majority of visitors in the summer and school holiday months.
On average, a holiday property in Winchester is occupied for 30 weeks a year, but a city centre property can receive virtually guaranteed income all-year round, as business travellers and culture-hungry city-breakers take advantage of the off-peak availability.
So what are the advantages of choosing a holiday let investment over a standard buy to let?
Well-maintained property: Your holiday let will be cleaned every week and any maintenance issues will need to be quickly dealt with before the next holidaymakers arrive, so there is less chance of any problems building up. With a standard buy to let, it could be months before you are able to give the property a full and thorough inspection, by which time costly repairs could be in order.
Potential higher returns: Holiday properties can command higher rentals than a long-term letting, but you need to factor in weekly cleaning costs, commission to letting agencies, and your expected levels of occupancy. However, if you find an attractive property in a good location, it could deliver a higher yield overall.
Freedom! You have the flexibility to choose if there are times when you would like to use the property yourself and block off weeks or weekends when you don’t want it booked – perhaps for when family or friends want to visit.
It’s worth noting that a holiday let doesn’t have to be a stand-alone property – it can be a converted outbuilding in your garden, a quirky one-bedroomed attic apartment or an existing ‘granny annex’ to your family home. Location is key, as is the property’s character, if you want your holiday let to succeed.
If you’re looking for the perfect holiday let in Hampshire – either as part of your new family home, or as a stand-alone investment, good local knowledge can go a long way – here at ScoutBee, we’d love to help you!