Holiday Let Property Investments
Find lucrative hands-off holiday lets for sale in the UK, generating strong net returns
How can we help you secure high-yielding holiday lets?
- Free property and lettings management on newly refurbished properties
- Short-term let properties generating yields of up to 10% in peak holiday season
- Premium holiday lets in high-demand locations such as the Lake District
- Tax-efficient property investments that maximise rental income
When it comes to acquiring the right investment properties with potential to generate high yields and passive income, it can be difficult to identify strong opportunities. This is why working with experienced, transparent and highly qualified property consultants is crucial to successfully purchasing property assets.
BuyAssociation is passionate about working with the UK’s leading developers in offering exclusive, off-market investment opportunities to both first-time buyers and practised investors. We search the property market for the best and most unique deals possible using a team of highly experienced, professional and qualified individuals and industry partners. With our investment properties, you can build a solid, sustainable portfolio through the acquisition of property-based products that have strong growth potential. The opportunities we identify for our community of investors are always based on their specifications and targets, complementing their requirements with properties suited to these needs. Through our 16 years of experience, our award-winning property experts have acquired extensive industry knowledge and are attentive to each and every client – customising our services accordingly. Thanks to our group buying power and established position in the market, we have unique access to one-of-a-kind properties that are offered directly by developers.
The location of the properties we acquire and supply, from the UK’s most prestigious and emerging developers, is at the core of our mission to acquire and supply value and quality. In addition to focusing on thriving areas such as Manchester, Leeds, Birmingham, Liverpool, London and Stockport, we also serve the surrounding areas. With respect to investment opportunities, we place a strong emphasis on data, market forecasts and rental demand. Our network of developers allows us to access fresh opportunities in markets that have a high yield potential, a fast-growing population, career opportunities, and strong metrics.
For our clients, we consistently go above and beyond to ensure that the investment process is straightforward, hassle-free and streamlined. Furthermore, the property investment consultants at BuyAssociation have an excellent track record of assisting clients to achieve long-term revenue through the discounted prices we source. For more information about our process, investment opportunities, or to discuss how we can help you, contact one of our experienced consultants.
How the UK staycation property boom has fuelled the demand for short-term lets
The UK has seen a prolific growth in the self-catering holiday sector following the initial Covid-19 outbreak and subsequent lockdown restrictions. During this period, holidaymakers became desperate to replace their overseas holidays in the sun with UK staycation trips. This has inspired a multitude of investors and second homebuyers to contribute their funds to the flourishing market.
With 30% of holidaymakers preferring to vacate in the UK to avoid the stress of travelling abroad, recent challenges have resulted in sensational success for the UK tourism industry. Since the staycation boom took off in 2020, property investors have generated higher revenues after increasing their rental prices as a result of such huge demand. As a result, many holiday let owners are now earning an average of £21,000 a year. Researchers and holiday experts now predict that the demand for UK holiday accommodation will not slow down in the coming years, as holidaymakers continue to book their breaks in the UK’s prime holiday hotspots. Therefore, the long-term revenue opportunities for landlords looking to invest in this profitable market could be significant.
Are holiday lets a good investment?
If investing in holiday lets is a direction you wish to take to diversify your portfolio, now is the time to start. The flourishing market, boosted by the summer staycation boom in 2020, has an array of benefits that holiday let landlords can take advantage of. With the average holiday let earning over 10% in rental yields at peak season, this genre of residential property has rapidly become an attractive asset to property investors. For those thinking of purchasing and running a domestic holiday let, you could gain a lucrative return on your investment for the following reasons.
Holiday lets are treated very differently to the average buy-to-let property as they are considered and taxed as trading businesses by HMRC. As a result, many landlords view furnished holiday lets to be a tax-efficient and profitable asset to obtain. Although the exact tax advantages vary from each property, landlords of FHLs can claim full mortgage interest tax relief. In addition, the ongoing expenses that come with managing holiday accommodation can be claimed in order to cover bills, furniture and maintenance costs.This entitlement does not apply to standard residential properties.
Furthermore, an FHL that is valued under £15,000 can mean investors are entitled to pay Business Rates on their property, rather than Council Tax.In some cases, landlords can completely avoid paying any rates at all. Furthermore, should a landlord decide to resell their holiday let, they can reap the benefits of lower Capital Gains Tax (10%) – considerably lower than the basic rate tax on buy-to-let properties.
Tax benefits of holiday lets
One advantage that draws a lot of investors towards purchasing a holiday let property is the favourable rates of tax relief that landlords can obtain. The tax benefits available for holiday let owners – that a standard buy-to-let landlord cannot acquire – can have a dramatic impact on how lucrative a property is. If a furnished holiday let is secured in areas with particularly high demand for holiday homes, landlords may qualify for a variety of tax advantages. What qualifies as a furnished holiday let is determined by the following factors:
- A holiday let situated in the UK or European Economic Area;
- Fully furnished accommodation with utilities and furniture that can be used by guests when they stay in the property;
- The property must be available as an operating holiday let for guests to occupy for at least 210 days out of the year, whereby at least 105 of these days are for public members/holidaymakers;
- The remaining time may be used by the owner or family to occupy the property – this will not be counted in the total number of days;
- The property should be actively promoted as holiday accommodation throughout the year;
- Should the furnished holiday let allow long-term stays to take place, occupants are not permitted to stay in the property for more than 31 days and there should not be any more than 22 weeks of long-term occupancy in total.
Generating additional income
Holiday lets are well known for providing a considerably higher level of rental income than a standard, long-term buy-to-let property would. This is due to the nature of a holiday let, as the rental charges can be raised for short-term tenants and, in most cases, holidaymakers are willing to pay the price for a high-quality home in a popular tourist location. Data suggests that holiday let landlords can earn up to 30% more in short-term rental yields than a standard buy-to-let landlord may earn on an annual basis.
Despite the associated operating costs such as maintenance charges, furniture and utility bills, holiday lets are renowned for being reasonably cash generative. Landlords are able to maximise their return on investment by simply charging a premium on rental costs. As the domestic holiday market continues to grow and demand persistently rises, buying a holiday let at this time is an excellent way to capitalise on the ‘staycation’ trend.
An additional lucrative aspect to holiday lets is the ability to earn money all year round. Renting a holiday home to holidaymakers enables landlords to receive their earnings ahead of a guests’ scheduled stay, as costs are incurred upon booking. With mobile phones making holiday booking simple, quick and easy, holiday property owners can expect to secure bookings regularly – revenue can be generated at any time once a customer completes the online booking process. When investors are strategic in their marketing tactics, occupancy rates can be optimised through advertising via major online travel agencies or through social media platforms.
Choosing the right location for your holiday let
When it comes to discovering the perfect location to purchase rental accommodation, you should first consider choosing an area you would personally like to visit. Landlords could save a substantial amount of money by combining their holiday business with personal trips, which is why your personal opinion matters. Once you have collated ideas of potential prime areas, landlords need to be tactical about where they choose to buy a holiday home, as the area must have plenty of demand for holiday accommodation. Occupancy rates and rental income are elevated by landlords that strategically purchase holiday lets in tourist destinations, which is why conducting thorough research is so important to your success. The following considerations should be taken into account:
- Does the property have sea views or is it located close to a beach?
- Is the property close to tourist attractions, pubs and restaurants?
- Would I like my property to accommodate large families or small groups/couples?
- Does the property have disabled access?
- Are there any transport links within close proximity for guests to travel via public transport?
- Does the property have appropriate parking facilities?
- Will the holiday let meet my personal needs and expectations should I choose to stay in it?
- What is the average rental cost of holiday accommodation in this area?
Choosing a holiday let that sells is crucial if you expect to maximise your returns. To achieve this, landlords should always be aware of their customers’ expectations and work hard to meet them. Generally speaking, guests look for a high standard of accommodation that contains top quality utilities and facilities for use throughout their stay.
The best places to buy a holiday home in the UK
As it stands, a greater number of holidaymakers looking for a UK getaway are showing great interest in beauty spots, rather than city breaks in areas such as Edinburgh and London. In 2021, Google identified that most searchers looking for accommodation in the summer were exploring options in areas such as the Lake District and Cornwall. With restrictions in place, escaping to the UK’s most scenic destinations has seemed to be the best alternative option to travelling outside the country. Experts estimate that people’s desire to take their holidays within the UK will extend across the next few years now that more and more investors are offering luxury holiday lets in picturesque and coastal locations. That said, it is vital that investors looking to obtain a holiday let conduct thorough research of the most prominent, high-demand areas in the country.
It is difficult to determine the ideal area to operate a holiday let as preferences vary from person to person. However, the most attractive destinations for holidaymakers in recent years include the likes of Cornwall, Devon, Dorset, Wales, Yorkshire and the Lake District. There is a common theme that connects all of these places – scenic views, countryside, and countless tourist attractions for all of the family to enjoy. Whether it’s a holiday cottage you wish to rent out or luxury apartments, these prime UK holiday destinations are the perfect place to begin your holiday let venture.
Secure your luxury furnished Lake District holiday lets
BuyAssociation works hard to identify popular locations for investors to acquire lucrative property investments. Through a strong combination of knowledge, experience, resources, group buying power and our firm position in the market, we source holiday lets that we believe will generate a high rental income for our valued clients. As a result, we have secured a variety of unique, hands-off opportunities in one of the UK’s most prominent tourist destinations: Cumbria. These luxury apartments are situated within the picturesque village of Bolton-Upon-Dearne. The collection of apartments and cottages are positioned within elegant, historic grounds; perfectly balancing traditional architecture with premium, contemporary interiors. These high-quality apartments comprise between one and four bedrooms, accommodating a wide range of tastes and holiday requirements. The opulent holiday homes are suitable for couples, small parties and families, and can be adapted to cater to all requirements. Obtaining one of these holiday lets could generate net returns of up to 10%, producing all-year-round profit in the most tax-efficient way.
As a leading source of off-market investment opportunities, BuyAssociation is known for securing our clients remarkable discounts on unique residential developments. The property types we have access to range from HMOs and build-to-rents to conventional buy-to-lets, all of which are attractive investments. As a team of investment consultants, we believe that learning about you, your long and short-term goals, and your approach to investing, are all fundamental to our mission. BuyAssociation recognises that everyone’s investment journey is unique, which is why we do things differently. By forming professional relationships between developers and investors, we streamline the development process, resulting in a seamless, straightforward process. Additionally, you can count on us to provide you with competent guidance and regular updates about distinctive developments and schemes. So, why should you consider investing with us? Because at BuyAssociation, we pay meticulous attention to our clients’ objectives and circumstances in order to assist them in maximising their chances of investment success. We secure discounted investment prices at opportune stages of the development process, ensuring that the potential for capital growth is accomplished.
Why invest in the Lake District?
The Lake District has an unmatched reputation as one of the country’s top rural, cultural destinations. Proving itself year upon year as one of the UK’s most popular holiday hotspots, Cumbria remains one of the most favourable locations to build a sustainable property portfolio. On average, landlords running all-year-round holiday accommodation can expect to earn an 8.52% annual average return on their investments. Holiday homes in the Lake District remain popular throughout the entirety of the year, no matter the season. In fact, the prospect of enjoying a winter holiday in the National Park is attractive to tourists from all over the UK as well as abroad. From mountain hikes and Christmas markets to beautiful winter landscapes, it’s perfect for stargazing, sledging and building snowmen. This idyllic spot ensures that holiday lets remain in demand throughout even the coldest of months.
Talk to us today to secure your holiday let
Our team of investment consultants at BuyAssociation can help both new investors and experienced landlords in acquiring properties that add value to their portfolio. We are dedicated to making the investment process as hassle-free as possible, fostering strong relationships with our clients to best advise them on their investment journeys. We take a proactive approach in assisting clients with everything they need to complete their transactions successfully, ironing out any complications that may arise on the way. For expert guidance and professional help from property consultants that are client-orientated, transparent and attentive, call us now for assistance with all of your property investing needs.