Home | News | Why You Should Consider Investing in a Holiday Home

The UK holiday industry is currently thriving and has been for some time now, with no end in sight to the continued growth in UK based holidays. There has been a great deal of investment in the last 5 years from private equity groups, who can see where the market is headed.

Here are some of the top reasons why it’s a good time to take the plunge and reap the benefits of letting to holiday makers:

UK tourism is booming

There are a variety of reasons for the recent boom in UK based tourism, and many are quick to say this is all down to ‘Brexit’, however, this boom started long before the current situation and we believe this has more to do with a change in standards and availability of accommodation and also investment in the industry from many sources. UK tourism has seen a steady increase for the past decade and the idea of a ‘Staycation’ is becoming more popular each year. According to Visit Britain, this sector is predicted to grow by around 4% per year for the next 5 years.

Use your Holiday home yourself

It doesn’t have to just be an investment; it can also be a perfect holiday retreat for you and your family & friends to use as often as you want. With our owner access portal, you would have access to your own booking calendar and be able to block out as many available dates as you wish. We can provide you with a full calendar of weekly rates, so you’ll know the most cost-effective times to use the property yourself. As one of our owners, you would also have access to our discounted ferry rates, making a trip to the Island even easier.

A great way to earn extra income

Depending on your individual circumstances, your income from holiday lettings should cover all costs related to owning a second home with some left over as extra income. The amount you can earn depends entirely on the type of property & location, and also what extra amenities will attract bookings.

The most popular addition people search for is a Hot-tub, which will add around 15% to your level of bookings, but does come with associated maintenance costs. Allowing Pets to stay at your property will also help booking levels and Pet-friendly properties book on average 8% more than properties that don’t accept Pets. You can also earn a little more per week by adding a ‘pet charge’.

Flexible Tax benefits

One of the many benefits of owning a holiday home is the potential tax benefits, but this can be a bit confusing and we’d recommend all owners get professional advice before proceeding. If you meet the criteria to qualify as a Furnished Holiday Let (FHL), the tax office allows additional tax benefits, some of which are over and above those afforded to long term residential landlords. To be able to qualify as an FHL, the property must be available to let for at least 30 weeks a year and actually be let for 15 weeks a year (105 days). Also, the property cannot be let to the same person for more than 31 consecutive days.

The potential tax benefits include:

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