Riding the staycation wave
With international travel restrictions still hampering the plans of many Brits, and the appeal of holidays and short breaks across the UK still very much in vogue, this is a trend which has certainly not escaped the attention of landlords from Land’s End to John o’ Groats.
The rise of the short-term let and holiday let markets has created some appealing opportunities for landlords to generate stronger yields as the ‘staycation’ boom continues to generate heightened demand.
Recent analysis from Moneyfacts shows that there are now 231 buy-to-let mortgages eligible for holiday lets, a 25% increase in the number of available deals available since September 2021. Looking further back, in August 2020, there were just 74 similar deals available.
There are more lenders entering this part of the market too, with 27 brands offering holiday let loans. This is an increase from 25 in September 2021 and 21 in April 2021. The average cost of fixed-rate mortgage deals available on holiday lets is also becoming more competitive. In January 2022 borrowers would pay an average rate of 3.92%, down from 4.14% in September 2021.
Here at Dynamo, we have certainly experienced a rise in the number of enquiries regarding holiday lets over the course of 2021 and into 2022. The increased number of product options signifies a real positive but it’s also important to point out that this remains a complex lending type. This complexity and additional choice – with some only being available through intermediary channels – continues to place an even greater emphasis on good, professional advice and this is apparent for first-time landlords through to seasoned investors who have been around the property game for generations.
If you would like to know more about the holiday let market and the available options, then why not speak to one of our specialist advisers today?