Adrian Moloney is group sales director of InterBay Commercial
What do Torquay, Windermere, York, Newquay and Bath all have in common?
Sure, they’re all very nice places – some have beaches, others are known for their historical sights, while one or two are famous for their stunning scenery – but they’re scattered all around the country and, at first glance, there doesn’t seem to be anything to connect them.
However, with lockdown restrictions slowly starting to ease, people are starting to think about where they might like to escape to for a week or two’s holiday later this year.
With foreign travel still largely off the radar for the time being, they’re instead turning their attention to places closer to home, which leads me back to the connection between the places I mentioned earlier.
According to a recent survey by Tripadvisor, these are included in the top 10 places in the UK that people have been searching for when looking for the perfect staycation this summer.
Tripadvisor’s research has found that the number of travellers searching for British staycations has shot up by 384% in recent weeks compared with the first week in January, with Torquay taking the top spot.
Almost half of Brits (47%) say they’re planning to travel domestically this summer, with 44% intending to take two or more holidays and 13% saying they hope to take at least three.
Not surprisingly, the sharp increase in the number of people thinking of holidaying in the UK has piqued the interest of investors looking to benefit from the surge in demand for short-term rental property.
Not only could a holiday let property earn you as much rental income in a single week during peak season as you would in a whole month with a standard buy to let property, the extended stamp duty holiday period means investors could save thousands of pounds in tax.
Wanting to buy a holiday let property and securing the mortgage to turn the dream into a reality are two completely different things, however.
Many mainstream lenders are reluctant to lend on holiday let properties because of the way they calculate affordability. With most buy-to-let mortgages, affordability is worked out using the annual rental figure for a property being let for 12 months of the year. This can cause problems when it comes to holiday lets, which are rented out for weeks, rather than months, with income often fluctuating depending on the season.
Some lenders will also ask to see evidence of previous holiday let experience, or that a target property has been used as a holiday rental in the past.
Fortunately, specialist lenders such as InterBay Commercial are here to help. These lenders have a vast amount of experience in providing bespoke solutions and can offer products specifically designed to meet the needs of investors looking to make the move into holiday lets.
Take our new holiday let proposition, which is aimed at personal ownership and limited company landlords.
Investors can choose from a range of products and we will calculate rent based on a letting period of 30 weeks a year, based at an average of the low, middling and high season rates.
With more people planning to take their holidays in the UK this year, and a corresponding rise in the number of landlords hoping to meet that demand, it’s reassuring to know there are lenders you can turn to.
Whether they’re thinking of purchasing a property on the beautiful South West coast or in the stunning surroundings of the Lake District, it’s specialist lenders which are often best placed to help them realise their dreams.