Second homes generating more income than ever for owners


Homeowners across the world who own a second property are now significantly more likely to rent it out for income than they were a decade ago.

More than two-thirds of second homeowners globally rent out their additional property either as a source of income or to cover the costs of the home, according to new research compiled by Savills with HomeAway, showing a sizeable change in how people are using their property assets now compared to 10 years ago.

Out of all the second homes bought today, more than a third were purchased solely as a rental property (as opposed to those that are now being rented out when this wasn’t the initial intention, for example). Looking back to the situation 10 years ago, this figure was just 19%, while back in the early 2000s it was an estimated 14%.

People enticed by holiday homes

The study, which looked at a cross-section of second property owners internationally, also shows that in the 1970s, 90% of people who owned more than one property kept it solely for their own use, demonstrating how attitudes towards property ownership have switched over the years.

One reason for this change could be down to the increasing popularity of holiday homes as an alternative to a traditional hotel or bed and breakfast, and this is particularly the case with younger travellers, said Christophe Pingard, vice president EMEA of HomeAway. “They are willing to invest in their trips, although price is still an important factor when choosing accommodation, particularly as they are travelling more often,” he added. “That’s one of the factors that make staying in a holiday home so attractive.”

Making money from property

With the rise of Generation Rent meaning more people than ever are entering the private rented sector, rental yields are also a consideration for many owners of second homes, with around a third of people making enough rental income to cover their costs. This could be beneficial for those who only want to do short-term lets or those who are hoping to make profits from capital appreciation when they come to sell. Meanwhile, another third are making a profit through rent.

The location of a property will have a major influence in how much money can be made from it, but the research seems to suggest that more people than ever are dabbling in property investment to make financial gains as opposed to keeping a bolthole for personal use.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

Could a £10,000 windfall help millennials onto the property ladder?

Second homes generating more income than ever for owners


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.