It would appear that for the time being short term lets in Newark are the way to go for landlords and property investors based on the comments of Fabrik Invest, which works with holiday parks across the UK, they say the staycation boom is here to stay despite the easing of travel restrictions.
“The longer-term nature of travel restrictions means a staycation boom not just for this summer but in all likelihood for next year too, and potentially the year after” says managing director Dale Anderson. “Even once restrictions are lifted, we anticipate many families will still feel reluctant to fly and so will look to take breaks in the UK instead. Add to that those who choose not to fly for environmental reasons and those who can’t or won’t have the Covid-19 vaccine, and so probably won’t be able to fly, and the long-term prospects of the holiday let market here in the UK look very healthy indeed.”
Research by Mintel has given an insight into how lucrative this market now is – holidaymakers’ UK spend in 2021 is estimated to be some £7.1 billion, up 22 per cent on 2019.
Anderson also says investors in holiday chalets can take advantage of better tax breaks than traditional buy to let owners, and even suggests that increased working from home may trigger increasing corporate use of holiday parks for the likes of team-building exercises. “The current staycation boom has served to focus attention on this type of investment and its advantages. Over the longer-term, holiday lets provide one of the highest-yielding types of property investment.” Fabrik says first-time holiday let investors should assess pre-pandemic letting records to get a realistic long-term view of potential yields, and to consider the benefits of a reputable management company.
This short term let boom is as a result of a crackdown on rogue landlords by the government, which of course has a knock on effect for good landlords to, which includes closing tax breaks and making evictions much harder. As a result, landlords are looking at alternative business models to generate better revenues and will give greater protection to their assets.
If you are a landlord seeking alternatives, then contact us and we will discuss your options.